1 00:00:00,120 --> 00:00:02,520 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,640 --> 00:00:05,680 Speaker 1: Matt and today we're helping you figure out if real 3 00:00:05,800 --> 00:00:27,280 Speaker 1: estate investing is right for you. What if this entire 4 00:00:27,280 --> 00:00:29,880 Speaker 1: episode all we talked about. We talked about real estate, 5 00:00:29,880 --> 00:00:32,680 Speaker 1: but we specifically talked about like farms, like how to 6 00:00:32,760 --> 00:00:35,199 Speaker 1: know if beat farms are what you should invest in? 7 00:00:35,320 --> 00:00:38,240 Speaker 1: If your name is white truth and the answers. Yes. Now, 8 00:00:38,320 --> 00:00:40,280 Speaker 1: this episode, we are going to talk about real estate, 9 00:00:40,320 --> 00:00:43,800 Speaker 1: specifically single or multi family homes, but we're not gonna 10 00:00:43,920 --> 00:00:45,880 Speaker 1: even really dive into those kind of weeds. We're gonna 11 00:00:45,920 --> 00:00:49,040 Speaker 1: talk about whether or not real estate investing makes sense 12 00:00:49,080 --> 00:00:50,959 Speaker 1: for you, for your lifestyle, what it is that you're 13 00:00:50,960 --> 00:00:53,720 Speaker 1: trying to achieve. We're gonna talk through just a bunch 14 00:00:53,760 --> 00:00:56,600 Speaker 1: of different benefits of real estate investing in the different 15 00:00:56,640 --> 00:00:58,960 Speaker 1: things that you should consider before you pull the trigger, 16 00:00:59,440 --> 00:01:02,319 Speaker 1: before you you actually purchase your first property. Yeah, we 17 00:01:02,480 --> 00:01:06,200 Speaker 1: like real estate and buying rental properties as a long 18 00:01:06,319 --> 00:01:08,880 Speaker 1: term wealth building move, but that doesn't mean just because 19 00:01:08,920 --> 00:01:10,680 Speaker 1: Matt and I do it because we enjoy it and 20 00:01:10,720 --> 00:01:13,240 Speaker 1: like it, that it's right for everyone. So we've got 21 00:01:13,280 --> 00:01:16,039 Speaker 1: some important things for you to think about so you 22 00:01:16,040 --> 00:01:18,080 Speaker 1: can decide whether it's sorry for you in your license. 23 00:01:18,440 --> 00:01:20,240 Speaker 1: But before we get to that, Matt, your hair is 24 00:01:20,240 --> 00:01:22,280 Speaker 1: getting rather long. It looks like you haven't had a 25 00:01:22,319 --> 00:01:24,080 Speaker 1: haircut in quite some time. You're just saying that because 26 00:01:24,080 --> 00:01:25,800 Speaker 1: you actually just got a haircut, and I see you 27 00:01:25,840 --> 00:01:28,160 Speaker 1: over there looking nice and sharp, kind of showing off 28 00:01:28,160 --> 00:01:32,160 Speaker 1: a little bit with your Great Clips. We'll say, the 29 00:01:32,160 --> 00:01:34,399 Speaker 1: price of a great Clips haircut recently went up, but 30 00:01:34,560 --> 00:01:36,399 Speaker 1: I was able to track down a coupon, and it 31 00:01:36,480 --> 00:01:38,800 Speaker 1: was time like I was waiting for a coupon or 32 00:01:38,840 --> 00:01:40,720 Speaker 1: some sort of sale in order to get my hair cut. 33 00:01:40,920 --> 00:01:43,759 Speaker 1: So my hair is getting kind of long, but still 34 00:01:43,840 --> 00:01:46,240 Speaker 1: not nearly as long as yours. My first okay, so 35 00:01:46,480 --> 00:01:48,280 Speaker 1: once you get past a certain point, then you can 36 00:01:48,320 --> 00:01:50,720 Speaker 1: just write it up. Now, Like when it's short like 37 00:01:50,760 --> 00:01:52,760 Speaker 1: yours and it starts getting a little shaggy around the ears, 38 00:01:52,760 --> 00:01:54,840 Speaker 1: it just looks like you need a haircut if you're 39 00:01:54,880 --> 00:01:57,120 Speaker 1: like at home trims like every every month, just to 40 00:01:57,200 --> 00:01:59,120 Speaker 1: keep it in line. Yeah, So, okay, I actually wanted 41 00:01:59,160 --> 00:02:01,920 Speaker 1: to talk about at home hims because I have cut 42 00:02:01,960 --> 00:02:03,600 Speaker 1: my own hair, or I've not cut my own hair 43 00:02:04,840 --> 00:02:06,360 Speaker 1: since I was ten years old. I think We've talked 44 00:02:06,400 --> 00:02:08,640 Speaker 1: about this one time on the show before. But when 45 00:02:08,680 --> 00:02:11,560 Speaker 1: I was ten, my mom was doing just like a 46 00:02:11,560 --> 00:02:15,040 Speaker 1: little quick at home trim and she botched it. And 47 00:02:15,120 --> 00:02:18,760 Speaker 1: even as a ten year old, I said, never again, mom, 48 00:02:18,800 --> 00:02:21,000 Speaker 1: Like I was so mad. Even as a kid, and 49 00:02:21,080 --> 00:02:24,120 Speaker 1: starting literally at the age of ten, I started cutting 50 00:02:24,120 --> 00:02:27,000 Speaker 1: my own hair. I think the first few weren't that great. Uh. 51 00:02:27,040 --> 00:02:29,640 Speaker 1: In middle school, I uh, I buzzed it. You know, 52 00:02:29,639 --> 00:02:31,720 Speaker 1: it kind of took the easy, easy path. But definitely 53 00:02:31,840 --> 00:02:33,560 Speaker 1: later in high school and in college, I found ways 54 00:02:33,560 --> 00:02:34,720 Speaker 1: to actually make it look good. I feel like I'm 55 00:02:34,720 --> 00:02:36,480 Speaker 1: pretty good at it now. But like you said, my 56 00:02:36,520 --> 00:02:39,640 Speaker 1: hair now is the longest it's ever been. But specifically so, 57 00:02:39,639 --> 00:02:41,760 Speaker 1: you're talking about the price of haircuts, right, and I 58 00:02:41,760 --> 00:02:45,240 Speaker 1: think on average, I think I guess most dudes get 59 00:02:45,240 --> 00:02:47,359 Speaker 1: their hair cut like maybe once every six weeks. I 60 00:02:47,360 --> 00:02:50,600 Speaker 1: will say, male and female haircuts very very different. What 61 00:02:50,880 --> 00:02:53,280 Speaker 1: my wife would spen on a haircuts, vastly different than 62 00:02:53,600 --> 00:02:56,400 Speaker 1: much more expensive for the ladies out there. But many women, 63 00:02:56,400 --> 00:02:57,920 Speaker 1: the way they cut their hair, need to get their 64 00:02:57,919 --> 00:03:00,320 Speaker 1: hair cut a whole lot less frequently. So it's true 65 00:03:00,320 --> 00:03:01,919 Speaker 1: my wife kids a haircut every like I don't know, 66 00:03:02,040 --> 00:03:03,560 Speaker 1: nine or twelve months, so you can afford to spend 67 00:03:03,560 --> 00:03:05,360 Speaker 1: a little bit more when you do. Perhaps this is 68 00:03:05,360 --> 00:03:08,000 Speaker 1: easily to justify it, but for us, uh, and for 69 00:03:08,040 --> 00:03:10,119 Speaker 1: most dudes, I'm going to assume that you spend roughly 70 00:03:10,120 --> 00:03:12,440 Speaker 1: about hundred sixty dollars a year. Right, So if you're 71 00:03:12,440 --> 00:03:14,720 Speaker 1: looking at like an eighteen dollar cut, if you don't 72 00:03:14,720 --> 00:03:16,239 Speaker 1: have the coupon like you did, would you would you 73 00:03:16,240 --> 00:03:17,680 Speaker 1: get your coupon by the way, like slick deals. Ye, 74 00:03:17,720 --> 00:03:19,840 Speaker 1: slick Deal saw it on there and I was like, Okay, 75 00:03:19,840 --> 00:03:22,560 Speaker 1: cool haircut. So otherwise you're looking at twenty bucks, so 76 00:03:22,560 --> 00:03:25,079 Speaker 1: maybe a hundred and sixty bucks a year. So I 77 00:03:25,080 --> 00:03:27,919 Speaker 1: actually crunch the numbers. If I had started investing in 78 00:03:28,000 --> 00:03:31,600 Speaker 1: the smpf und when I was ten, i had that 79 00:03:31,639 --> 00:03:34,760 Speaker 1: money compound every single year, I would be sitting on 80 00:03:34,920 --> 00:03:39,720 Speaker 1: over twenty six thousand dollars justin haircuts alone. That's a 81 00:03:39,720 --> 00:03:43,080 Speaker 1: lot of money. That's one really expensive haircut or many 82 00:03:43,160 --> 00:03:45,800 Speaker 1: years of haircuts. And sure you can deduct a couple 83 00:03:45,800 --> 00:03:47,720 Speaker 1: of pairs of clippers that I bought over the years 84 00:03:48,120 --> 00:03:50,920 Speaker 1: in order to facilitate some at home trims. But I 85 00:03:50,920 --> 00:03:53,360 Speaker 1: think it's really powerful and in my opinion, it's really 86 00:03:53,360 --> 00:03:55,560 Speaker 1: fun to kind of crunch the numbers and see the 87 00:03:55,680 --> 00:03:58,840 Speaker 1: power of what an expense, uh, something as small as 88 00:03:58,840 --> 00:04:01,120 Speaker 1: a haircut like that, what that can do if you 89 00:04:01,120 --> 00:04:03,720 Speaker 1: were to invest that money instead. Yeah. Sometimes you know, 90 00:04:03,760 --> 00:04:06,960 Speaker 1: the personal finance nerds, they pick too heavily on some 91 00:04:07,040 --> 00:04:10,360 Speaker 1: of the smaller things in your budget, right, and they, uh, 92 00:04:10,520 --> 00:04:12,000 Speaker 1: they make it sound like if you would just cut 93 00:04:12,000 --> 00:04:14,920 Speaker 1: that out completely, you would you'd be able to save 94 00:04:14,960 --> 00:04:17,800 Speaker 1: and invest the right amount, you'd be more secure when 95 00:04:17,839 --> 00:04:20,160 Speaker 1: it comes to your money. And some of that is overblown, right, 96 00:04:20,160 --> 00:04:22,799 Speaker 1: like the idea of being able to buy a coffee 97 00:04:22,839 --> 00:04:25,800 Speaker 1: every now and again outside of the house, Like that's 98 00:04:25,800 --> 00:04:27,839 Speaker 1: not gonna make or break you. Um, but yeah, it 99 00:04:27,960 --> 00:04:30,600 Speaker 1: is true that those little things do add up. And 100 00:04:30,640 --> 00:04:32,359 Speaker 1: I remember that that was one thing my mom always 101 00:04:32,400 --> 00:04:34,040 Speaker 1: told me growing up, is that the little things add up. 102 00:04:34,279 --> 00:04:36,159 Speaker 1: And and it's true, like even something as small as 103 00:04:36,160 --> 00:04:38,600 Speaker 1: a haircut, how much money you could lead to over 104 00:04:38,760 --> 00:04:42,200 Speaker 1: you know, a few decades is pretty impressive. So yeah, 105 00:04:42,279 --> 00:04:44,640 Speaker 1: just just a note, you don't necessarily have to cut 106 00:04:44,680 --> 00:04:46,440 Speaker 1: your hair at home. UM. I like to have someone 107 00:04:46,440 --> 00:04:49,719 Speaker 1: else cut my hair. It's quicker to have that done. 108 00:04:49,920 --> 00:04:53,720 Speaker 1: It's less messy there too. You gotta try, that's true. Yeah, so, uh, 109 00:04:53,880 --> 00:04:56,599 Speaker 1: you don't necessarily have a dog in this fight. So 110 00:04:57,040 --> 00:04:59,920 Speaker 1: where people want to, you know, want to side. I've 111 00:05:00,000 --> 00:05:01,920 Speaker 1: no problem with people paying to get their hair cutter. 112 00:05:02,320 --> 00:05:04,960 Speaker 1: The same here to each his own, Yeah, her own. 113 00:05:04,960 --> 00:05:07,040 Speaker 1: But it's nice to at least to see the numbers 114 00:05:07,040 --> 00:05:08,920 Speaker 1: and be like, okay, wait, is it is it worth 115 00:05:08,960 --> 00:05:11,599 Speaker 1: it for me to start cutting at home? Because it 116 00:05:11,640 --> 00:05:14,039 Speaker 1: will mean a whole lot more money down the road 117 00:05:14,440 --> 00:05:17,640 Speaker 1: if I, you know, start doing it myself. But then again, 118 00:05:17,680 --> 00:05:19,080 Speaker 1: you might get passed up for the rais because your 119 00:05:19,120 --> 00:05:21,080 Speaker 1: hair looks sewful. I don't know, there's a lot of 120 00:05:21,080 --> 00:05:23,600 Speaker 1: things to consider, that is true. Man. Let's introduce the 121 00:05:23,600 --> 00:05:26,160 Speaker 1: beer that we're going to enjoy on this episode. This 122 00:05:26,200 --> 00:05:29,599 Speaker 1: one is my Cruise Blanca Brewery out of Illinois, and 123 00:05:29,600 --> 00:05:32,920 Speaker 1: this is a corn grisette. This is sent to us 124 00:05:32,920 --> 00:05:35,640 Speaker 1: by Dennis looking forward to enjoying this one on the show, 125 00:05:35,880 --> 00:05:37,640 Speaker 1: And we will share our thoughts at the end of 126 00:05:37,640 --> 00:05:40,120 Speaker 1: the episode, no doubt. But for now, let's get onto 127 00:05:40,120 --> 00:05:41,600 Speaker 1: the topic at hand, Matt, and let's dig in and 128 00:05:41,800 --> 00:05:45,920 Speaker 1: help people assess whether real estate investing is right for them. Recently, Matt, 129 00:05:45,960 --> 00:05:49,039 Speaker 1: I've kind of become fascinated by big waves and the 130 00:05:49,080 --> 00:05:52,640 Speaker 1: people that you have, Yeah, like surfers that decide to 131 00:05:52,920 --> 00:05:55,440 Speaker 1: risk their lives and go out and surf sixty ft swells. Well, 132 00:05:55,440 --> 00:05:57,200 Speaker 1: a few months ago you talked about how you want 133 00:05:57,240 --> 00:05:58,960 Speaker 1: to go, like if you had to go out in 134 00:05:59,000 --> 00:06:02,000 Speaker 1: like a giant you a flash, you go out by 135 00:06:02,040 --> 00:06:04,800 Speaker 1: like letting this giant tsunami or just the giant wave 136 00:06:04,920 --> 00:06:08,360 Speaker 1: just overtake you, which sounds like the worst thing. If 137 00:06:08,360 --> 00:06:10,040 Speaker 1: you had to dine in natural disaster, that's the best 138 00:06:10,080 --> 00:06:12,800 Speaker 1: way to go drowning. Drowning sounds awful, or you don't 139 00:06:12,880 --> 00:06:14,960 Speaker 1: drown in a tsunami. When hundred foot wave hits you, 140 00:06:14,960 --> 00:06:16,520 Speaker 1: I think you just kind of like boom. I think 141 00:06:16,520 --> 00:06:19,920 Speaker 1: you're gone. I think you're out. I guess if there's 142 00:06:19,920 --> 00:06:21,479 Speaker 1: a piece of wood in the wave that hits you 143 00:06:21,480 --> 00:06:24,200 Speaker 1: in the head. Sure, the sheer force of that wave, dude, 144 00:06:24,760 --> 00:06:27,080 Speaker 1: come on, we'll see noise. They're like big, but they're slow. 145 00:06:28,160 --> 00:06:30,760 Speaker 1: You're picturing like one of these massive like like you're 146 00:06:30,760 --> 00:06:32,920 Speaker 1: talking about these giant waves that people like the big 147 00:06:32,920 --> 00:06:35,599 Speaker 1: wave surfers surf, right, Yeah, yeah, I don't think there's 148 00:06:35,600 --> 00:06:39,240 Speaker 1: many of those overtaking light countries or whatever. Yeah, all right, 149 00:06:39,320 --> 00:06:42,720 Speaker 1: so but really, yeah, the big waves fascinating. I think 150 00:06:42,720 --> 00:06:44,719 Speaker 1: it's kind of incredible how you can get it is 151 00:06:44,760 --> 00:06:47,200 Speaker 1: cool waves that big, because you know, I'm used to 152 00:06:47,200 --> 00:06:51,039 Speaker 1: playing in two foot waves in the Atlantic Ocean or 153 00:06:51,120 --> 00:06:53,400 Speaker 1: you know, in the Gulf of Mexico, And like, sometimes 154 00:06:53,440 --> 00:06:55,320 Speaker 1: the more that that we research something, the more we 155 00:06:55,480 --> 00:06:58,160 Speaker 1: realize that maybe it isn't as daunting as it first appears. 156 00:06:58,200 --> 00:07:00,440 Speaker 1: Like the more I've been watching this document worry about 157 00:07:00,839 --> 00:07:03,360 Speaker 1: big wave surfing um, and I'm like, okay, cool, there's 158 00:07:03,360 --> 00:07:06,040 Speaker 1: like a way to attack these big waves so that 159 00:07:06,120 --> 00:07:08,440 Speaker 1: it doesn't feel like you're gonna die every time you 160 00:07:08,440 --> 00:07:10,360 Speaker 1: go out. And then you know, you begin to see 161 00:07:10,600 --> 00:07:13,240 Speaker 1: a bunch of different surfers like surfing these things well 162 00:07:13,280 --> 00:07:15,920 Speaker 1: and then having a good time. But for these surfers 163 00:07:16,120 --> 00:07:17,360 Speaker 1: to be able to do this well, they have to 164 00:07:17,360 --> 00:07:19,800 Speaker 1: be able to conquer those waves with a surfboard and 165 00:07:19,840 --> 00:07:22,240 Speaker 1: a friend on a jet ski. And I don't think 166 00:07:22,280 --> 00:07:24,320 Speaker 1: I'll ever probably become a big wave surfer. It's probably 167 00:07:24,360 --> 00:07:26,480 Speaker 1: not in my future. But I think it is fascinating 168 00:07:26,480 --> 00:07:29,480 Speaker 1: to see how something that looks really really difficult, with 169 00:07:29,520 --> 00:07:32,080 Speaker 1: a little research, it can look a little more accessible 170 00:07:32,120 --> 00:07:33,760 Speaker 1: than we thought it was in the in the beginning. 171 00:07:34,160 --> 00:07:36,119 Speaker 1: And I think you know you and I we believe 172 00:07:36,160 --> 00:07:37,840 Speaker 1: the same thing is true when it comes to investing 173 00:07:37,880 --> 00:07:41,640 Speaker 1: in real estate, that with the right knowledge, something that 174 00:07:41,760 --> 00:07:44,800 Speaker 1: appears on its surface to be really difficult, something that 175 00:07:44,840 --> 00:07:47,200 Speaker 1: you don't want to participate in because you're afraid you're 176 00:07:47,200 --> 00:07:51,160 Speaker 1: gonna get smashed, that that maybe, uh, it's not actually 177 00:07:51,200 --> 00:07:54,400 Speaker 1: as difficult as it appears, and maybe it's right for you, 178 00:07:54,520 --> 00:07:56,000 Speaker 1: maybe it's not. We're going to kind of get into 179 00:07:56,120 --> 00:07:57,760 Speaker 1: some details on that. Yeah, we're gonna talk about that 180 00:07:57,760 --> 00:07:59,400 Speaker 1: and how it applies with the real estate because you've 181 00:07:59,400 --> 00:08:01,640 Speaker 1: heard us talking about investing in real estate a lot 182 00:08:01,680 --> 00:08:03,560 Speaker 1: on the show. Like you and I, we both have 183 00:08:03,600 --> 00:08:06,080 Speaker 1: rental properties, and we often even recommend it if someone 184 00:08:06,240 --> 00:08:09,480 Speaker 1: is looking just for another investing opportunity, just as past Monday, 185 00:08:09,520 --> 00:08:12,040 Speaker 1: we had a listener who wanted to venture in that direction. 186 00:08:12,400 --> 00:08:14,200 Speaker 1: But the question that we want to help you answer 187 00:08:14,240 --> 00:08:17,440 Speaker 1: today though, is if real estate investing is right for you, 188 00:08:18,080 --> 00:08:20,720 Speaker 1: because it's certainly not the right move for everyone. So 189 00:08:20,800 --> 00:08:22,440 Speaker 1: what we're gonna do on this show is we're going 190 00:08:22,480 --> 00:08:25,200 Speaker 1: to discuss the benefits of investing in real estate. We're 191 00:08:25,200 --> 00:08:27,720 Speaker 1: gonna debunk or even kind of confirm a little bit 192 00:08:27,760 --> 00:08:30,080 Speaker 1: some of the different common excuses that we hear about 193 00:08:30,120 --> 00:08:32,440 Speaker 1: real estate investing. And we're gonna do that in order 194 00:08:32,480 --> 00:08:35,679 Speaker 1: to help you decide if you should start writing that 195 00:08:35,920 --> 00:08:39,360 Speaker 1: real estate investing wave to further your analogy there. Yeah, 196 00:08:39,400 --> 00:08:41,520 Speaker 1: and I think it can be a really fun ride, 197 00:08:41,559 --> 00:08:44,199 Speaker 1: like I have enjoyed being a real estate investor over 198 00:08:44,280 --> 00:08:47,120 Speaker 1: these last like ten or eleven years, But you also 199 00:08:47,120 --> 00:08:48,680 Speaker 1: don't want to bite off more than you can chew. 200 00:08:49,080 --> 00:08:50,320 Speaker 1: And and so we are going to get to some 201 00:08:50,320 --> 00:08:52,920 Speaker 1: of those common excuses like how true are they? And 202 00:08:52,920 --> 00:08:55,040 Speaker 1: then what are some questions you need to ask yourself 203 00:08:55,080 --> 00:08:58,600 Speaker 1: before you actually dive into real estate investing. But before 204 00:08:58,640 --> 00:09:00,920 Speaker 1: we give you that, let's talk about some of the 205 00:09:00,920 --> 00:09:04,680 Speaker 1: biggest benefits that real estate investors are able to achieve. 206 00:09:05,240 --> 00:09:08,480 Speaker 1: And so are O I right? Your return on investments? 207 00:09:08,880 --> 00:09:10,400 Speaker 1: This is how the money. We have to talk about 208 00:09:10,720 --> 00:09:13,480 Speaker 1: the monetary winds that you get by becoming a real 209 00:09:13,559 --> 00:09:15,960 Speaker 1: estate investor, and if it's done well, like if you 210 00:09:16,000 --> 00:09:18,440 Speaker 1: know what you're doing, which we'll talk about more later too. 211 00:09:18,480 --> 00:09:21,079 Speaker 1: But real estate can provide a better r o I 212 00:09:21,280 --> 00:09:23,480 Speaker 1: than investing in the stock market. And I would say 213 00:09:23,520 --> 00:09:25,959 Speaker 1: that most stock market enthusiasts, Matt, They're not going to 214 00:09:26,040 --> 00:09:29,600 Speaker 1: give that claim much credence. It's commonly assumed that you 215 00:09:29,640 --> 00:09:33,199 Speaker 1: do better investing in the market in the in stocks 216 00:09:33,520 --> 00:09:36,880 Speaker 1: then you do investing in houses. And that's true, but 217 00:09:37,040 --> 00:09:39,760 Speaker 1: not for real estate and investors, right, It's like, that's 218 00:09:39,760 --> 00:09:41,599 Speaker 1: true when you look at the national border realtors and 219 00:09:41,600 --> 00:09:44,480 Speaker 1: they're comparing the single family housing, the single family home 220 00:09:44,520 --> 00:09:46,720 Speaker 1: that you own, let somebody owns over the years, and 221 00:09:46,720 --> 00:09:48,960 Speaker 1: how does that appreciate compared to the stock market? Exactly. 222 00:09:48,960 --> 00:09:51,240 Speaker 1: There's a big difference between the you know, just the 223 00:09:51,280 --> 00:09:53,760 Speaker 1: standard home that the average American purchases to live in 224 00:09:54,160 --> 00:09:57,320 Speaker 1: compared to what it is that we are seeing from 225 00:09:57,400 --> 00:10:01,240 Speaker 1: the houses that we purchase as investments, exactly. And there's 226 00:10:01,240 --> 00:10:03,240 Speaker 1: a saying in real estate that the money is made 227 00:10:03,240 --> 00:10:05,839 Speaker 1: when you purchase the house, and so there's just a 228 00:10:05,920 --> 00:10:08,680 Speaker 1: lot of truth to that too. Local real estate markets 229 00:10:08,679 --> 00:10:11,480 Speaker 1: are are a whole lot more imperfect than the stock market, 230 00:10:11,679 --> 00:10:14,720 Speaker 1: which I think allows a savvy investor to score a 231 00:10:14,720 --> 00:10:16,880 Speaker 1: better deal than they could if they just kind of 232 00:10:16,920 --> 00:10:20,440 Speaker 1: constantly plugging money into index funds, which is something we 233 00:10:20,440 --> 00:10:22,720 Speaker 1: also love. But yeah, the ability to buy a single 234 00:10:22,720 --> 00:10:26,440 Speaker 1: family home or a multifamily home at below market rates 235 00:10:27,000 --> 00:10:30,240 Speaker 1: because of differing local factors. That is one of the 236 00:10:30,280 --> 00:10:34,200 Speaker 1: biggest pros of investing in real estate. That imperfect market 237 00:10:34,240 --> 00:10:37,720 Speaker 1: allows you to get a better make a better investment 238 00:10:37,760 --> 00:10:40,920 Speaker 1: than you can make in really almost any other investing method. Yeah. 239 00:10:40,920 --> 00:10:42,960 Speaker 1: Another benefit of owning a rental real estate is that 240 00:10:42,960 --> 00:10:46,599 Speaker 1: it offers convenient cash flow every month. Investing in the 241 00:10:46,600 --> 00:10:50,360 Speaker 1: stock market is incredibly easy and convenient, but money inside 242 00:10:50,360 --> 00:10:53,080 Speaker 1: of your workplace retirement account is a little less convenient 243 00:10:53,120 --> 00:10:57,000 Speaker 1: to access before you reach retirement age. Owning rental properties 244 00:10:57,000 --> 00:10:59,640 Speaker 1: will allow you to realize income from that investment from 245 00:10:59,720 --> 00:11:03,040 Speaker 1: day one. Even for the early retirees out there. Even 246 00:11:03,080 --> 00:11:06,560 Speaker 1: accessing your retirement funds early through a roth conversion like 247 00:11:06,600 --> 00:11:08,520 Speaker 1: that takes some planning and it takes us solid five 248 00:11:08,600 --> 00:11:11,120 Speaker 1: years of waiting before you have access to those funds 249 00:11:11,120 --> 00:11:13,560 Speaker 1: without penalty. And so one of the one of the 250 00:11:13,640 --> 00:11:16,280 Speaker 1: definite benefits is the ability to to start seeing money 251 00:11:16,320 --> 00:11:18,559 Speaker 1: show up in your account in the form of rent. Yeah, 252 00:11:18,679 --> 00:11:21,559 Speaker 1: no doubt and there's there's a bunch of tax benefits 253 00:11:21,640 --> 00:11:24,400 Speaker 1: that come alongside of investing in real estate too. This 254 00:11:24,480 --> 00:11:29,040 Speaker 1: is certainly another reason that people tout for owning rental properties, 255 00:11:29,160 --> 00:11:32,320 Speaker 1: right and uh, the main one is depreciating your property 256 00:11:32,480 --> 00:11:34,640 Speaker 1: over a period of time over twenty seven and a 257 00:11:34,679 --> 00:11:38,240 Speaker 1: half years. Yeah, depreciating that property over that amount of 258 00:11:38,240 --> 00:11:41,600 Speaker 1: time produces your tax liability each year that your rental 259 00:11:41,600 --> 00:11:44,160 Speaker 1: property is in use. So the cool thing about this 260 00:11:44,400 --> 00:11:47,120 Speaker 1: is that even if you're making money every month, even 261 00:11:47,160 --> 00:11:52,000 Speaker 1: if your cash flow positive on that property, well, depreciation 262 00:11:52,160 --> 00:11:54,920 Speaker 1: can make your real estate investment, your real estate asset, 263 00:11:55,240 --> 00:11:58,360 Speaker 1: appear less lucrative when it comes to tax time. This 264 00:11:58,400 --> 00:12:01,080 Speaker 1: isn't nefarious, This isn't doing something thing wrong. This is 265 00:12:01,120 --> 00:12:02,640 Speaker 1: just the way the tax code is set up. And 266 00:12:02,640 --> 00:12:05,080 Speaker 1: so you can make money on a home, but it 267 00:12:05,080 --> 00:12:07,280 Speaker 1: looks like it's not making money, and that's good for 268 00:12:07,280 --> 00:12:08,959 Speaker 1: your bottom line when it comes to tax times, or 269 00:12:08,960 --> 00:12:10,880 Speaker 1: at least it's making less money. Right And and the 270 00:12:10,880 --> 00:12:12,719 Speaker 1: whole idea behind this is that you need to look 271 00:12:12,760 --> 00:12:15,520 Speaker 1: at investment properties like a business, right Because with the business, 272 00:12:15,520 --> 00:12:19,000 Speaker 1: you make purchases and those different items that you use 273 00:12:19,080 --> 00:12:22,160 Speaker 1: to facilitate business do depreciate over time, like that new 274 00:12:22,200 --> 00:12:24,640 Speaker 1: computer you had to buy exact or like a forklift. 275 00:12:24,679 --> 00:12:26,400 Speaker 1: I feel like it's always an example that you see 276 00:12:26,440 --> 00:12:28,160 Speaker 1: as folks are writing about this, But the same is 277 00:12:28,160 --> 00:12:30,800 Speaker 1: true when it comes to an investment property. You can 278 00:12:30,840 --> 00:12:34,440 Speaker 1: depreciate that over time. And the mortgage interest deduction, that's 279 00:12:34,440 --> 00:12:37,800 Speaker 1: another great tax benefit. The only thing is is it 280 00:12:37,840 --> 00:12:40,720 Speaker 1: just doesn't apply to everyone. When the standard deduction increased 281 00:12:40,800 --> 00:12:44,680 Speaker 1: substantially a few years ago, far fewer folks now actually 282 00:12:44,760 --> 00:12:47,640 Speaker 1: have their mortgage interest deducted. And that's because the standard 283 00:12:47,679 --> 00:12:49,720 Speaker 1: deduction is so high. It's like, you know, almost twenty 284 00:12:49,720 --> 00:12:53,360 Speaker 1: five thousand or twenty four something in one. I think 285 00:12:53,360 --> 00:12:56,880 Speaker 1: it's going to be like something like that. So it 286 00:12:56,880 --> 00:12:59,439 Speaker 1: does for married final jointing, Yeah, yeah, exactly. So it 287 00:12:59,480 --> 00:13:01,920 Speaker 1: doesn't make sense for a lot of folks to itemize 288 00:13:02,200 --> 00:13:04,800 Speaker 1: their deductions. But if you do itomize your deductions and 289 00:13:04,800 --> 00:13:07,040 Speaker 1: your own a rental property, this is another perk. And 290 00:13:07,080 --> 00:13:09,439 Speaker 1: maybe we're even presenting it kind of backwards there. I 291 00:13:09,480 --> 00:13:13,600 Speaker 1: would say that by getting a rental property that kind 292 00:13:13,600 --> 00:13:15,360 Speaker 1: of means it might make sense for you to them 293 00:13:15,400 --> 00:13:18,320 Speaker 1: begin to itemize your deductions because you would then be 294 00:13:18,320 --> 00:13:22,160 Speaker 1: able to count that paid interest to your lender in 295 00:13:22,280 --> 00:13:25,520 Speaker 1: order to reduce your tax liability. Another thing, though, too 296 00:13:25,679 --> 00:13:28,440 Speaker 1: is depending on how many properties you have. One of 297 00:13:28,480 --> 00:13:30,319 Speaker 1: the changes that happened to the tax law a few 298 00:13:30,360 --> 00:13:32,800 Speaker 1: years ago, back again, back Ineen, was that it reduced 299 00:13:32,840 --> 00:13:35,720 Speaker 1: the amount of mortgage debt that you could take advantage of. 300 00:13:35,720 --> 00:13:37,360 Speaker 1: What it comes to this deduction so used to be 301 00:13:37,400 --> 00:13:40,360 Speaker 1: at one million dollars and now it's at seven fifty 302 00:13:40,360 --> 00:13:44,360 Speaker 1: thousand dollars. Yeah, yeah, but tax benefits is still certainly 303 00:13:44,520 --> 00:13:47,360 Speaker 1: one check mark in the box of like it. Well, 304 00:13:47,400 --> 00:13:49,679 Speaker 1: it's a pro of investing in real estate. I think 305 00:13:49,720 --> 00:13:52,199 Speaker 1: another thing that that real estate investors love. One of 306 00:13:52,200 --> 00:13:55,000 Speaker 1: the things that I love most about investing in rental 307 00:13:55,000 --> 00:13:59,200 Speaker 1: properties is how tangible they are. UM. Investing in the 308 00:13:59,200 --> 00:14:00,719 Speaker 1: stock market can be get to feel like it's just 309 00:14:00,760 --> 00:14:03,199 Speaker 1: a bunch of numbers on a screen, UM, and you're 310 00:14:03,240 --> 00:14:05,720 Speaker 1: you're watching things rise and fall. And maybe you're watching 311 00:14:05,720 --> 00:14:07,679 Speaker 1: things rise and fall too much, You're you're too in 312 00:14:07,720 --> 00:14:10,600 Speaker 1: tune to it. But the beauty of owning a rental 313 00:14:10,640 --> 00:14:13,600 Speaker 1: property is that something physical you can go like, take 314 00:14:13,600 --> 00:14:16,160 Speaker 1: a look at it, um, and yeah, I think it 315 00:14:16,200 --> 00:14:19,040 Speaker 1: feels a little more real. I would say this is 316 00:14:19,080 --> 00:14:21,000 Speaker 1: not a good enough reason by itself to get into 317 00:14:21,040 --> 00:14:23,200 Speaker 1: real estate investing, Like I want to own something tangible. 318 00:14:23,200 --> 00:14:26,000 Speaker 1: I'm gonna not invest in the stock market because owning 319 00:14:26,080 --> 00:14:28,320 Speaker 1: real estate is going to pay off for me more 320 00:14:28,560 --> 00:14:31,720 Speaker 1: because it is a physical asset. That's not true either, right, Yeah, 321 00:14:31,720 --> 00:14:34,200 Speaker 1: that feels more like a hobby, Like if you just 322 00:14:34,280 --> 00:14:37,640 Speaker 1: like pretty houses, right, Like that's an okay, that's like 323 00:14:37,760 --> 00:14:40,200 Speaker 1: that's fine, that that's an additional benefit, But that doesn't 324 00:14:40,240 --> 00:14:42,640 Speaker 1: need to be the only reason. Yeah, yeah, but it 325 00:14:42,720 --> 00:14:46,000 Speaker 1: is something that investors find rewarding. And owning that physical 326 00:14:46,040 --> 00:14:49,160 Speaker 1: house and keeping it in good condition, I feel like 327 00:14:49,160 --> 00:14:51,680 Speaker 1: it kind of feels like you're investing in the community. Right. 328 00:14:52,240 --> 00:14:54,520 Speaker 1: The homes that I own math are in close proximity 329 00:14:54,560 --> 00:14:57,200 Speaker 1: to where to where we live, and some of my 330 00:14:57,320 --> 00:14:59,960 Speaker 1: former tenants are now actually homeowning neighbors, Like I still 331 00:15:00,000 --> 00:15:01,640 Speaker 1: see them around the neighborhood, which is which is kind 332 00:15:01,640 --> 00:15:04,840 Speaker 1: of cool. And so yeah, I feel like the tangible 333 00:15:05,000 --> 00:15:07,920 Speaker 1: realities actually kind of help my mindset as an investor. 334 00:15:08,200 --> 00:15:10,200 Speaker 1: I'm like, it helps me think about how I want 335 00:15:10,240 --> 00:15:11,440 Speaker 1: to treat my tenants, how I want to take care 336 00:15:11,480 --> 00:15:12,840 Speaker 1: of my home because it's right around the corner for 337 00:15:12,920 --> 00:15:16,000 Speaker 1: me more holistic view towards that property. Yeah. Yeah, So 338 00:15:16,040 --> 00:15:17,880 Speaker 1: I like that it's tangible. I like that it's real. 339 00:15:17,960 --> 00:15:19,960 Speaker 1: I like that I can go by and you know, 340 00:15:20,080 --> 00:15:21,960 Speaker 1: trim the headges if I need to. Yeah. Absolutely. One 341 00:15:21,960 --> 00:15:24,240 Speaker 1: of my favorite tenants at one of my properties, they 342 00:15:24,240 --> 00:15:27,040 Speaker 1: literally purchased a home that was three houses down, and 343 00:15:27,080 --> 00:15:28,920 Speaker 1: so I see them from time to time. But I'm 344 00:15:28,960 --> 00:15:31,040 Speaker 1: with you. I love that that's something that we can 345 00:15:31,520 --> 00:15:33,680 Speaker 1: that's something like enjoyment that we can get from our 346 00:15:33,760 --> 00:15:37,040 Speaker 1: investment properties. Uh. And you know, you don't only want 347 00:15:37,040 --> 00:15:39,040 Speaker 1: to collect pretty houses, and in fact, that's kind of 348 00:15:39,040 --> 00:15:41,400 Speaker 1: like a poor investing strategy when it comes to real estate. 349 00:15:41,720 --> 00:15:44,040 Speaker 1: But I mean for someone like I really like spaces 350 00:15:44,080 --> 00:15:46,320 Speaker 1: and how spaces work. Uh, And that's something I like 351 00:15:46,360 --> 00:15:48,040 Speaker 1: to keep in mind when it comes to just looking 352 00:15:48,040 --> 00:15:49,680 Speaker 1: at some of these different properties, like what is it 353 00:15:49,720 --> 00:15:52,520 Speaker 1: about this that makes this an attractive home? Like? Why 354 00:15:52,640 --> 00:15:54,840 Speaker 1: does this space work? What is what about this house 355 00:15:54,880 --> 00:15:56,280 Speaker 1: is going to make a tendant want to stay here 356 00:15:56,520 --> 00:15:59,120 Speaker 1: year after year as opposed to maybe just looking at 357 00:15:59,360 --> 00:16:01,840 Speaker 1: like the square footage or just the beds and bass. 358 00:16:01,880 --> 00:16:03,840 Speaker 1: There's that sort of architect side of me that really 359 00:16:03,960 --> 00:16:07,560 Speaker 1: enjoys homes as well. Another benefit though, of owning a 360 00:16:07,560 --> 00:16:10,640 Speaker 1: rental property or a few others, uh, is that they 361 00:16:10,800 --> 00:16:14,320 Speaker 1: can be helpful when it comes to diversification with your investments. 362 00:16:14,360 --> 00:16:16,640 Speaker 1: We talk a lot about investing in the stock market, 363 00:16:16,640 --> 00:16:20,880 Speaker 1: and obviously where fans of you stocking away money into 364 00:16:20,880 --> 00:16:24,480 Speaker 1: your workplace retirement accounts or you know, an IRA as well. 365 00:16:24,960 --> 00:16:27,200 Speaker 1: And if you're invested in a total stock market index 366 00:16:27,280 --> 00:16:30,080 Speaker 1: fund or a target date fund, you are diversified. But 367 00:16:30,360 --> 00:16:32,600 Speaker 1: if you've been a great investor for a while, investing 368 00:16:32,640 --> 00:16:36,000 Speaker 1: in real estate can provide more helpful diversification. It can 369 00:16:36,040 --> 00:16:38,240 Speaker 1: kind of add that cherry on top when it comes 370 00:16:38,280 --> 00:16:41,040 Speaker 1: to your assets being in something that isn't going to 371 00:16:41,200 --> 00:16:44,000 Speaker 1: fluctuate maybe with the daily news. Yeah, I agreed, And 372 00:16:44,040 --> 00:16:46,080 Speaker 1: I think you know another perk is a real estate 373 00:16:46,400 --> 00:16:48,760 Speaker 1: can act as in an inflation hedge. You know, with 374 00:16:48,800 --> 00:16:51,080 Speaker 1: all the recent inflation talk, it's kind of top of 375 00:16:51,120 --> 00:16:53,320 Speaker 1: mind right now. You know, the ability that you have 376 00:16:53,400 --> 00:16:56,080 Speaker 1: to lock in a low interest rate potentially for the 377 00:16:56,080 --> 00:16:59,320 Speaker 1: next thirty years can be a benefit of owning rental 378 00:16:59,320 --> 00:17:02,440 Speaker 1: real estate. Over the years, your property value will rise 379 00:17:02,840 --> 00:17:05,159 Speaker 1: so well, the price of rent, but your mortgage is 380 00:17:05,160 --> 00:17:07,679 Speaker 1: going to stay roughly the same. And this is a 381 00:17:07,680 --> 00:17:10,240 Speaker 1: helpful benefit. You know, as the price of goods and 382 00:17:10,320 --> 00:17:13,359 Speaker 1: services go up as the price of rents friz, you know, 383 00:17:13,440 --> 00:17:16,000 Speaker 1: you kind of have this fixed rate mortgage that isn't 384 00:17:16,040 --> 00:17:18,280 Speaker 1: really going to change in the same way while all 385 00:17:18,320 --> 00:17:20,880 Speaker 1: these other things are changing around you. So, um, yeah, 386 00:17:20,920 --> 00:17:23,720 Speaker 1: if you're looking for an inflation hedge, rental real estate 387 00:17:23,840 --> 00:17:26,040 Speaker 1: is a great one. That's definitely something to keep in mind. 388 00:17:26,280 --> 00:17:29,600 Speaker 1: Pursuing real estate investing also offers you more control in 389 00:17:29,640 --> 00:17:33,680 Speaker 1: the investing process. Again, passive investing in index funds is great, 390 00:17:34,040 --> 00:17:36,359 Speaker 1: but a real estate investing allows you to kind of 391 00:17:36,400 --> 00:17:38,240 Speaker 1: call the shots, maybe a little bit more than you 392 00:17:38,280 --> 00:17:40,600 Speaker 1: would if the money was just tied up in the market. So, 393 00:17:40,640 --> 00:17:43,880 Speaker 1: for instance, if you want to force appreciation into that home, man, 394 00:17:43,960 --> 00:17:45,879 Speaker 1: go for it. See what you can do to improve 395 00:17:45,920 --> 00:17:48,280 Speaker 1: that property. What can you do to that property to 396 00:17:48,400 --> 00:17:51,640 Speaker 1: make it garner a higher rent? And there's like that's 397 00:17:51,640 --> 00:17:53,560 Speaker 1: the cool thing about being a real estate investor is 398 00:17:53,560 --> 00:17:55,880 Speaker 1: there's all sorts of things you can do, like little 399 00:17:55,880 --> 00:17:58,320 Speaker 1: tweaks to make that the case right. You can't necessarily 400 00:17:58,359 --> 00:18:01,640 Speaker 1: overcome a terrible location right right where nobody wants to live. 401 00:18:01,880 --> 00:18:04,520 Speaker 1: But if you buy a house like and it needs 402 00:18:04,520 --> 00:18:07,359 Speaker 1: a little bit of TLC, like, you can do the 403 00:18:07,480 --> 00:18:10,640 Speaker 1: work in order to make that home more valuable and 404 00:18:10,800 --> 00:18:14,679 Speaker 1: more attractive to two renters, and ultimately that turn it 405 00:18:14,680 --> 00:18:16,080 Speaker 1: into a home that's gonna make you more money. It 406 00:18:16,160 --> 00:18:18,200 Speaker 1: kind of makes me think of that old school monster 407 00:18:18,240 --> 00:18:20,440 Speaker 1: truck racing game. I think I was on Sega, where 408 00:18:20,800 --> 00:18:22,600 Speaker 1: you know, as you win races, you win money, and 409 00:18:22,600 --> 00:18:24,919 Speaker 1: then with that money you can upgrade your tires, your engine, 410 00:18:24,920 --> 00:18:26,760 Speaker 1: your suspension, things like that. I mean, that's kind of 411 00:18:26,760 --> 00:18:28,439 Speaker 1: how it is when it comes to real estate. You 412 00:18:28,480 --> 00:18:30,199 Speaker 1: get to decide what it is that you're going to 413 00:18:30,280 --> 00:18:33,080 Speaker 1: pursue to improve that property. If you buy, like say, 414 00:18:33,119 --> 00:18:35,119 Speaker 1: the ugly home on the block, and then you you know, 415 00:18:35,200 --> 00:18:37,639 Speaker 1: you fix it up, you spend some uh some money, 416 00:18:37,760 --> 00:18:39,960 Speaker 1: you put some sweat equity into it, you're going to 417 00:18:40,040 --> 00:18:42,840 Speaker 1: see the value of that investment increase and you're going 418 00:18:42,880 --> 00:18:44,840 Speaker 1: to get a higher return on it as well. And 419 00:18:44,880 --> 00:18:47,800 Speaker 1: so investing in the stock market is wonderful. We love 420 00:18:47,920 --> 00:18:51,200 Speaker 1: the passive nature of it, but it doesn't offer the 421 00:18:51,240 --> 00:18:53,520 Speaker 1: same control that you have over it. There's not much 422 00:18:53,560 --> 00:18:56,000 Speaker 1: that you can do to cause the SMP five to 423 00:18:56,040 --> 00:18:58,520 Speaker 1: go up next week, more next month. Um, you're pretty 424 00:18:58,600 --> 00:19:00,639 Speaker 1: much sitting in the back seat. You're just going along 425 00:19:00,680 --> 00:19:02,639 Speaker 1: for the ride. Compared to the control that you have 426 00:19:02,680 --> 00:19:04,080 Speaker 1: when it comes to real estate. I guess if you're 427 00:19:04,080 --> 00:19:05,960 Speaker 1: invested in Tesla, you can go then buy like a 428 00:19:06,000 --> 00:19:08,800 Speaker 1: thousand Tesla's and then that would help increase the stock 429 00:19:08,840 --> 00:19:14,760 Speaker 1: price of Tesla. But in your bankruptcy so and with evaluations, 430 00:19:14,760 --> 00:19:17,160 Speaker 1: that's not totally exactly how it works, right, Yes, yes, yeah, 431 00:19:17,480 --> 00:19:19,320 Speaker 1: you're trying to help their bottom line. But like this 432 00:19:19,400 --> 00:19:20,840 Speaker 1: guy's making the news, why is he buying all these 433 00:19:20,880 --> 00:19:24,560 Speaker 1: Teslas we should sell? Does the opposite of what you 434 00:19:24,600 --> 00:19:26,840 Speaker 1: want to do? Right? All right? Well, yeah, we've got 435 00:19:26,840 --> 00:19:29,040 Speaker 1: more to talk about when it comes to real estate 436 00:19:29,040 --> 00:19:31,840 Speaker 1: investing and whether or not it's right for you, including 437 00:19:31,840 --> 00:19:34,280 Speaker 1: we're gonna get to some of the most common excuses, 438 00:19:34,600 --> 00:19:37,240 Speaker 1: one of which being prices are at all time highs 439 00:19:37,280 --> 00:19:39,600 Speaker 1: for homes, so real estate investing doesn't make any sense. 440 00:19:39,720 --> 00:19:41,479 Speaker 1: But is that true? Well we'll talk about that right 441 00:19:41,480 --> 00:19:52,720 Speaker 1: after this break. We are back in Jel. We just 442 00:19:52,720 --> 00:19:54,920 Speaker 1: talked about many of the great benefits that real estate 443 00:19:54,920 --> 00:19:58,399 Speaker 1: investing can bring uh into your life. But even with 444 00:19:58,600 --> 00:20:01,920 Speaker 1: that list of great points, there is always gonna be uh, 445 00:20:02,160 --> 00:20:04,240 Speaker 1: some naysayers out there and some folks who just have 446 00:20:04,320 --> 00:20:07,159 Speaker 1: a bunch of excuses. And so let's address some of 447 00:20:07,200 --> 00:20:10,280 Speaker 1: the most common excuses that people give that not invest 448 00:20:10,320 --> 00:20:13,760 Speaker 1: in real estate. Whether those excuses hold any water, and 449 00:20:13,800 --> 00:20:16,720 Speaker 1: if that means real estate investing is for you, you know, 450 00:20:16,800 --> 00:20:19,280 Speaker 1: just because there are some serious advantages to real estate 451 00:20:19,280 --> 00:20:21,720 Speaker 1: doesn't mean that we think that everyone should become a 452 00:20:21,760 --> 00:20:24,639 Speaker 1: real estate investor. Just like becoming a doctor, there's some 453 00:20:24,680 --> 00:20:27,360 Speaker 1: serious advantages to becoming a doctor. I'm sure that work 454 00:20:27,400 --> 00:20:31,080 Speaker 1: is incredibly gratifying. You're literally fixing people's bodies, you know, Uh, 455 00:20:31,280 --> 00:20:33,320 Speaker 1: you make good money as well. Like that's a huge 456 00:20:33,400 --> 00:20:35,520 Speaker 1: thing that people go for. But should everybody out there 457 00:20:35,600 --> 00:20:38,240 Speaker 1: become a doctor? No way, I would never want Joel 458 00:20:38,280 --> 00:20:41,280 Speaker 1: to be my primary physician. Well, and come on, let's 459 00:20:41,280 --> 00:20:43,520 Speaker 1: be honest. Some of us have to the main podcasters. 460 00:20:43,520 --> 00:20:46,800 Speaker 1: So but yeah, I think Matt alluded to it before 461 00:20:46,840 --> 00:20:49,600 Speaker 1: the break. But one of the biggest excuses, especially right now, 462 00:20:50,200 --> 00:20:53,280 Speaker 1: is the current climate, Like does that influence whether or 463 00:20:53,320 --> 00:20:55,800 Speaker 1: not I should be investing in real estate. The market's hot, 464 00:20:55,920 --> 00:20:58,480 Speaker 1: it doesn't make any sense to be an investor. Well, 465 00:20:58,600 --> 00:21:00,680 Speaker 1: I've heard a lot of folks say things like that, 466 00:21:01,119 --> 00:21:04,479 Speaker 1: especially as we've seen massive increases in home values over 467 00:21:04,520 --> 00:21:07,680 Speaker 1: the last year. Right that the typical US home increased 468 00:21:07,720 --> 00:21:11,120 Speaker 1: in value by over the last twelve months, and some 469 00:21:11,160 --> 00:21:13,800 Speaker 1: markets are even hotter than that, like Austin, Texas has 470 00:21:13,840 --> 00:21:16,440 Speaker 1: seen a thirty percent increase in home values. I can't 471 00:21:16,480 --> 00:21:18,480 Speaker 1: imagine trying to be a first time HomeBuyer could not 472 00:21:18,600 --> 00:21:21,800 Speaker 1: have right now in Austin, Texas. UH. And it's understandable 473 00:21:21,960 --> 00:21:25,040 Speaker 1: that individuals there may be a little wary to get 474 00:21:25,080 --> 00:21:27,800 Speaker 1: into real estate right now, but we feel that it 475 00:21:27,800 --> 00:21:30,120 Speaker 1: can still be a good idea as long as you're 476 00:21:30,160 --> 00:21:33,800 Speaker 1: being careful right and more careful than usual. When prices 477 00:21:33,840 --> 00:21:36,600 Speaker 1: are high, it's easier to make an investment that doesn't 478 00:21:36,600 --> 00:21:40,160 Speaker 1: make financial sense where the numbers don't work. But long 479 00:21:40,240 --> 00:21:42,720 Speaker 1: term buy and hold investors are able to benefit from 480 00:21:42,760 --> 00:21:45,399 Speaker 1: the low rates we're seeing right now too. Plus, we 481 00:21:45,440 --> 00:21:47,919 Speaker 1: would say deals can be found in any market. Just 482 00:21:47,960 --> 00:21:50,480 Speaker 1: because they're less frequent and they're harder to find doesn't 483 00:21:50,560 --> 00:21:53,640 Speaker 1: mean that you can't buy a rental property that makes 484 00:21:53,640 --> 00:21:55,720 Speaker 1: financial sense for you, that's right. Yeah, there's always two 485 00:21:55,720 --> 00:21:57,960 Speaker 1: types of ways, like overarching ways that you can get 486 00:21:57,960 --> 00:22:01,000 Speaker 1: a deal. Right. There are market forces that cause values 487 00:22:01,000 --> 00:22:04,000 Speaker 1: to decline on real estate. Uh, and what we're seeing 488 00:22:04,040 --> 00:22:06,600 Speaker 1: right now our market forces driving up the prices. But 489 00:22:06,680 --> 00:22:09,720 Speaker 1: even within that framework, there are always still individual factors. 490 00:22:09,760 --> 00:22:11,760 Speaker 1: There are personal reasons that folks are looking to get 491 00:22:11,760 --> 00:22:13,840 Speaker 1: out of our property, and that's when you're hoping that 492 00:22:13,880 --> 00:22:16,399 Speaker 1: you can swoop in scoop up a deal. And so 493 00:22:16,480 --> 00:22:18,840 Speaker 1: let's answer the question, right, is real estate investing right 494 00:22:18,880 --> 00:22:21,320 Speaker 1: for you, especially with how hot the market has been, 495 00:22:21,760 --> 00:22:23,840 Speaker 1: Only if you're willing to put in the work and 496 00:22:23,880 --> 00:22:25,600 Speaker 1: to do the research to know that you're getting a 497 00:22:25,600 --> 00:22:28,280 Speaker 1: good deal. You don't have to know everything there is 498 00:22:28,320 --> 00:22:30,200 Speaker 1: to know out there about real estate, but you should 499 00:22:30,240 --> 00:22:32,480 Speaker 1: read a couple of real estate investing books that are 500 00:22:32,520 --> 00:22:35,240 Speaker 1: well regarded before you jump in. I'm thinking of Retire 501 00:22:35,280 --> 00:22:38,119 Speaker 1: Early with Real Estate by Chad Carson. UH. The Millionaire 502 00:22:38,119 --> 00:22:41,439 Speaker 1: real Estate Investor is also tried and true classic, And 503 00:22:41,480 --> 00:22:43,760 Speaker 1: it's also crucial to develop price and knowledge of the 504 00:22:43,800 --> 00:22:47,280 Speaker 1: specific neighborhoods that you plan to primarily invest in. Writing 505 00:22:47,359 --> 00:22:51,560 Speaker 1: the numbers doing research on the different neighborhoods and rents 506 00:22:51,600 --> 00:22:54,080 Speaker 1: like that just becomes even more important when prices have 507 00:22:54,200 --> 00:22:56,920 Speaker 1: risen as much as they have, because you know, improper 508 00:22:56,960 --> 00:22:59,639 Speaker 1: knowledge can result in poor decisions when it comes to 509 00:23:00,320 --> 00:23:03,920 Speaker 1: uh investing in real estate, given how hot things currently are. Yeah, 510 00:23:03,960 --> 00:23:07,240 Speaker 1: and especially with something that's so location dependent. You know, 511 00:23:07,280 --> 00:23:10,840 Speaker 1: two neighborhoods over, rents might be going for fifteen or 512 00:23:10,840 --> 00:23:13,680 Speaker 1: twenty less than they are in the neighborhood you originally 513 00:23:13,680 --> 00:23:16,800 Speaker 1: looking in. And if you're thinking that a good deal, too, 514 00:23:16,760 --> 00:23:19,440 Speaker 1: neighborhoods over is the same as you know, the neighborhood 515 00:23:19,440 --> 00:23:22,880 Speaker 1: you've now shifted to looking at, Well, they're not the same. 516 00:23:22,920 --> 00:23:25,360 Speaker 1: Like you're not comparing apples to apples now, And so, yeah, 517 00:23:25,400 --> 00:23:27,040 Speaker 1: you do have to do your due diligence. You have 518 00:23:27,080 --> 00:23:29,680 Speaker 1: to know your neighborhoods. You have to know what rents 519 00:23:29,720 --> 00:23:31,399 Speaker 1: are going for, what you're likely to get for that 520 00:23:31,440 --> 00:23:33,840 Speaker 1: property if you were to buy it. And yeah, if 521 00:23:33,880 --> 00:23:35,960 Speaker 1: you live in let's say, the most expensive parts of 522 00:23:36,000 --> 00:23:39,160 Speaker 1: the country, investing in real estate becomes even more difficult. 523 00:23:39,320 --> 00:23:41,560 Speaker 1: You need even more money in order to buy a place, 524 00:23:41,920 --> 00:23:45,400 Speaker 1: and you're likely banking more on appreciation than on cash flow. 525 00:23:45,680 --> 00:23:47,960 Speaker 1: And so if the fundamentals of your local market don't 526 00:23:48,000 --> 00:23:50,879 Speaker 1: make sense for you as an investor, then you might 527 00:23:50,920 --> 00:23:52,840 Speaker 1: want to opt out. You might want to say, you 528 00:23:52,840 --> 00:23:54,800 Speaker 1: know what, I'm in the Bay Area and it doesn't 529 00:23:54,800 --> 00:23:57,200 Speaker 1: make sense for me to start investing locally in real estate. 530 00:23:57,400 --> 00:23:59,280 Speaker 1: I can't afford it. It's gonna take away too long 531 00:23:59,280 --> 00:24:01,639 Speaker 1: to save up and down aiment, and the numbers just 532 00:24:01,720 --> 00:24:04,800 Speaker 1: don't work out here for me to try to take 533 00:24:04,840 --> 00:24:07,320 Speaker 1: this on. Um. It's not that it's impossible, but it 534 00:24:07,400 --> 00:24:10,399 Speaker 1: just becomes so much harder that it makes sense to 535 00:24:10,520 --> 00:24:13,320 Speaker 1: invest in other ways as opposed to prioritizing real estate 536 00:24:13,520 --> 00:24:15,399 Speaker 1: when you're in one of those markets. Yeah, so all 537 00:24:15,400 --> 00:24:19,600 Speaker 1: of our listeners out there in in Austin, Texas or Bozeman, Montana, 538 00:24:19,680 --> 00:24:23,080 Speaker 1: different markets out there that have seen significant increases, You 539 00:24:23,119 --> 00:24:25,520 Speaker 1: can get into investing in real estate, but it may 540 00:24:25,520 --> 00:24:28,679 Speaker 1: not be the best time. But yeah, definitely something to 541 00:24:28,720 --> 00:24:30,680 Speaker 1: keep in mind, Joel. What are the other excuses that 542 00:24:30,720 --> 00:24:32,920 Speaker 1: folks often will give you when it comes to real 543 00:24:33,040 --> 00:24:35,640 Speaker 1: estate is that tenants they're gonna make my life miserable. 544 00:24:35,760 --> 00:24:38,159 Speaker 1: Like that's a common excuse that we hear, but screening 545 00:24:38,200 --> 00:24:42,000 Speaker 1: potential tenants. Well, is the easy answer to this common, 546 00:24:42,320 --> 00:24:46,440 Speaker 1: uh and honestly overblown excuse. We actually dedicated an entire 547 00:24:46,520 --> 00:24:49,560 Speaker 1: episode to that topic back in episode too sixty nine. 548 00:24:49,880 --> 00:24:52,720 Speaker 1: But if you follow our process of tenants screening, the 549 00:24:52,880 --> 00:24:55,880 Speaker 1: likelihood that you'll get tenants that make you wish that 550 00:24:56,000 --> 00:24:58,800 Speaker 1: you had never bought a rental is gonna be minimal. Uh. 551 00:24:58,840 --> 00:25:01,800 Speaker 1: You know, those those three a toilet explosion phone calls, 552 00:25:01,800 --> 00:25:04,640 Speaker 1: like they just don't happen, like the naysator's claim. Over 553 00:25:04,640 --> 00:25:06,639 Speaker 1: ten years of voting real estate, I've actually only gotten 554 00:25:06,840 --> 00:25:08,399 Speaker 1: one and it wasn't even a phone call. It was 555 00:25:08,400 --> 00:25:11,560 Speaker 1: a text message where a giant branch had fallen well 556 00:25:11,640 --> 00:25:13,520 Speaker 1: not even on the house, but on the tenant's car, 557 00:25:13,760 --> 00:25:15,040 Speaker 1: and I felt bad, and we took care of it. 558 00:25:15,160 --> 00:25:16,880 Speaker 1: You know, we took care of the tree. We cut 559 00:25:16,880 --> 00:25:19,600 Speaker 1: it down because it turned out it was sick, just 560 00:25:20,040 --> 00:25:21,920 Speaker 1: angry that it was dying for what it had done. 561 00:25:22,000 --> 00:25:23,840 Speaker 1: But like, that's the worst thing that has ever happened. 562 00:25:23,880 --> 00:25:25,800 Speaker 1: And honestly, you know, of course I'm glad that nobody 563 00:25:25,840 --> 00:25:26,800 Speaker 1: was in the car was in the middle of the 564 00:25:26,880 --> 00:25:30,080 Speaker 1: night during a storm, but those worst case scenarios rarely 565 00:25:30,119 --> 00:25:32,840 Speaker 1: actually happen, and it's a lot easier to find great 566 00:25:32,880 --> 00:25:35,720 Speaker 1: tenants out there. Yeah, I think that is a common excuse. 567 00:25:35,760 --> 00:25:37,800 Speaker 1: It's like, man, the tenants are going to be a nightmare. 568 00:25:38,000 --> 00:25:39,280 Speaker 1: But I'm gonna go out on a limb here and 569 00:25:39,320 --> 00:25:42,520 Speaker 1: say that nightmare tenants are essentially the landlord's fault. Like, 570 00:25:43,560 --> 00:25:47,000 Speaker 1: if you do you're proper vetting, if you know screen 571 00:25:47,000 --> 00:25:49,240 Speaker 1: tenants the right way, you're gonna get good tenants. That's 572 00:25:49,240 --> 00:25:52,320 Speaker 1: at least what I found. And yeah, even still, like 573 00:25:52,680 --> 00:25:54,119 Speaker 1: you're going to need to be able to set some 574 00:25:54,200 --> 00:25:57,160 Speaker 1: time aside to search for tenants and to do property maintenance. 575 00:25:57,440 --> 00:26:00,320 Speaker 1: So yeah, even with the best, most thoughtful tenants, the 576 00:26:00,440 --> 00:26:03,399 Speaker 1: property will still require some of your time and energy. 577 00:26:03,680 --> 00:26:05,440 Speaker 1: And so if you don't want to deal with tenants 578 00:26:05,560 --> 00:26:07,920 Speaker 1: or repairs at all, you're gonna need to hire a 579 00:26:07,960 --> 00:26:10,600 Speaker 1: property manager. You know, Matt and I were fans of 580 00:26:10,720 --> 00:26:13,719 Speaker 1: self managing. We manage our own properties, and especially if 581 00:26:13,760 --> 00:26:16,040 Speaker 1: you're buying a home in the immediate vicinity of where 582 00:26:16,080 --> 00:26:17,720 Speaker 1: you live, it makes a lot of sense for you 583 00:26:17,840 --> 00:26:20,480 Speaker 1: kind of take that on yourself, but it's okay to 584 00:26:20,560 --> 00:26:23,240 Speaker 1: hire professional to manage that property for you. Just know 585 00:26:23,480 --> 00:26:25,960 Speaker 1: that you know, while it's easier from a mental standpoint 586 00:26:26,280 --> 00:26:28,679 Speaker 1: to hire that property manager, you're like not gonna be 587 00:26:28,720 --> 00:26:32,080 Speaker 1: inundated with text messages or emails. Um, it is going 588 00:26:32,119 --> 00:26:34,080 Speaker 1: to be harder to make the numbers work if you 589 00:26:34,080 --> 00:26:36,120 Speaker 1: aren't willing to take on some of that work yourself. 590 00:26:36,440 --> 00:26:38,480 Speaker 1: That is true. Another excuse we often hear is that 591 00:26:38,520 --> 00:26:40,960 Speaker 1: you need a whole lot of money to get started 592 00:26:41,119 --> 00:26:44,199 Speaker 1: when it comes to investing in real estate. And you 593 00:26:44,200 --> 00:26:47,040 Speaker 1: know that's partly true. Houses like they are often the 594 00:26:47,040 --> 00:26:49,640 Speaker 1: most expensive things that you can buy, but it's still 595 00:26:49,720 --> 00:26:54,399 Speaker 1: possible to find great rental properties uh in the hundred 596 00:26:54,400 --> 00:26:56,960 Speaker 1: dollar range in many parts of the country. That may 597 00:26:56,960 --> 00:26:59,879 Speaker 1: not be possible, say like in California, in San Francisco, 598 00:27:00,160 --> 00:27:02,240 Speaker 1: but it is going to be uh much more affordable 599 00:27:02,240 --> 00:27:04,920 Speaker 1: in states like Alabama, Arkansas, Florida. I will say, Matt 600 00:27:04,960 --> 00:27:07,719 Speaker 1: I made an offer on a rental property recently for 601 00:27:08,000 --> 00:27:10,000 Speaker 1: it was a hundred and sixty dollars was the list price, 602 00:27:10,040 --> 00:27:12,240 Speaker 1: and it was adorable where we live in Atlanta. So 603 00:27:12,680 --> 00:27:15,720 Speaker 1: even where we live there are a major city. Atlanta 604 00:27:15,800 --> 00:27:17,840 Speaker 1: is a pretty huge city. And we're not talking about 605 00:27:17,880 --> 00:27:20,320 Speaker 1: like way out in the sticks, like this is a 606 00:27:20,359 --> 00:27:22,520 Speaker 1: home that was in the neighborhood, that is close to 607 00:27:22,520 --> 00:27:25,320 Speaker 1: public transit, that is in a desirable place to live, 608 00:27:25,600 --> 00:27:28,840 Speaker 1: So saving up down payments for more affordable properties won't 609 00:27:28,920 --> 00:27:32,240 Speaker 1: be nearly as difficult. Plus, there are ways to accelerate 610 00:27:32,240 --> 00:27:35,440 Speaker 1: that savings process, including doing things like renting out a 611 00:27:35,520 --> 00:27:38,000 Speaker 1: room in your current home. And honestly, that's really the 612 00:27:38,040 --> 00:27:40,479 Speaker 1: perfect way to get started when it comes to real 613 00:27:40,560 --> 00:27:43,359 Speaker 1: estate because you actually be dipping your toes in the 614 00:27:43,400 --> 00:27:45,600 Speaker 1: real estate investing waters a little bit. You'll kind of 615 00:27:45,600 --> 00:27:48,639 Speaker 1: get a taste of what it's like to manage a property. Yeah, 616 00:27:48,760 --> 00:27:51,640 Speaker 1: and so yeah, if if someone does have that excuse, 617 00:27:51,680 --> 00:27:55,640 Speaker 1: well it takes so much money to start me investing 618 00:27:55,640 --> 00:27:58,200 Speaker 1: in real estate, it probably doesn't make sense for me. Well, 619 00:27:58,760 --> 00:28:01,280 Speaker 1: let's talk about that. Is it right for you? Well, 620 00:28:01,840 --> 00:28:04,040 Speaker 1: this excuse, actually, I feel like has the most legs 621 00:28:04,080 --> 00:28:06,440 Speaker 1: of any of them, because you actually do need to 622 00:28:06,480 --> 00:28:09,560 Speaker 1: be financially stable in order to invest in real estate. Um, 623 00:28:09,600 --> 00:28:12,720 Speaker 1: you'll need a solid emergency fund, no high interest rate 624 00:28:12,720 --> 00:28:14,680 Speaker 1: debts that you owe. You know, if you have credit 625 00:28:14,720 --> 00:28:16,360 Speaker 1: card debt still, you don't want to pay that off 626 00:28:16,400 --> 00:28:18,879 Speaker 1: before you start investing in real estate. And You'll also 627 00:28:18,960 --> 00:28:20,960 Speaker 1: want to make sure that you're taking advantage of maybe 628 00:28:20,960 --> 00:28:24,840 Speaker 1: some of the easier guaranteed forms of investing hanging fruit. Yeah, 629 00:28:24,880 --> 00:28:26,280 Speaker 1: the four O one K with the employer match, Like, 630 00:28:26,320 --> 00:28:28,760 Speaker 1: you want to make sure you're jumping on that before 631 00:28:28,920 --> 00:28:32,040 Speaker 1: you're taking money to start buying properties. You don't want 632 00:28:32,040 --> 00:28:33,879 Speaker 1: to completely stop contributing to your four O one K 633 00:28:34,000 --> 00:28:36,520 Speaker 1: in order to invest in real estate. But then after 634 00:28:36,560 --> 00:28:40,760 Speaker 1: that you'll need to have even more money in savings, uh, 635 00:28:40,880 --> 00:28:42,720 Speaker 1: you know, for a down payment and to make any 636 00:28:42,760 --> 00:28:45,360 Speaker 1: repairs that the property needs when you boil it down. 637 00:28:45,560 --> 00:28:47,560 Speaker 1: You can take quite a bit of dedication and time 638 00:28:47,600 --> 00:28:50,600 Speaker 1: to save up those necessary funds. Right. It's never easy 639 00:28:50,720 --> 00:28:54,800 Speaker 1: to save up the down payments for a home that 640 00:28:54,840 --> 00:28:56,960 Speaker 1: you're trying to buy. But we would also say that 641 00:28:57,080 --> 00:28:59,240 Speaker 1: in the end it's worth it. It might take years, 642 00:28:59,280 --> 00:29:02,120 Speaker 1: and it likely will for most people, taking years, depending 643 00:29:02,160 --> 00:29:04,760 Speaker 1: on what mark you're in, maybe even half a decade, right, 644 00:29:04,760 --> 00:29:08,440 Speaker 1: maybe even six or seven years. But then finally being 645 00:29:08,440 --> 00:29:10,640 Speaker 1: able to make that purchase. Uh, it can be sweet, 646 00:29:10,720 --> 00:29:13,120 Speaker 1: it can make sense, but there is a whole lot 647 00:29:13,160 --> 00:29:15,920 Speaker 1: of truth to that excuse. Sometimes that money that up 648 00:29:15,920 --> 00:29:18,240 Speaker 1: from money that you need to get into real estate 649 00:29:18,320 --> 00:29:21,040 Speaker 1: investing can be too big of a hurdle to jump, 650 00:29:21,280 --> 00:29:24,080 Speaker 1: and it's not for everyone in large part because of that. Yeah, 651 00:29:24,160 --> 00:29:26,040 Speaker 1: this is one area where the stock market does come 652 00:29:26,040 --> 00:29:28,280 Speaker 1: out ahead because you can take a couple of bucks, 653 00:29:28,520 --> 00:29:31,320 Speaker 1: put them in your roth IRA account and buy two 654 00:29:31,360 --> 00:29:33,600 Speaker 1: dollars of an e t F and boom, you are 655 00:29:33,680 --> 00:29:35,680 Speaker 1: invested in the market. You can't quite do that when 656 00:29:35,720 --> 00:29:38,880 Speaker 1: it comes to investing in an actual physical property, because 657 00:29:39,240 --> 00:29:40,840 Speaker 1: you know, two dollars isn't gonna get you very far. 658 00:29:41,320 --> 00:29:43,200 Speaker 1: That that can maybe be the beginning of your earnest 659 00:29:43,240 --> 00:29:45,760 Speaker 1: money when it comes to purchasing at home, but you 660 00:29:45,800 --> 00:29:48,160 Speaker 1: do have to kind of pinch off that savings host 661 00:29:48,160 --> 00:29:50,640 Speaker 1: for a while as you build up a nice size 662 00:29:50,680 --> 00:29:53,000 Speaker 1: down payment plus other cash reserves that you're gonna want 663 00:29:53,000 --> 00:29:56,440 Speaker 1: to have on hand. Joel, we've got several more excuses 664 00:29:56,440 --> 00:29:58,360 Speaker 1: that we're gonna get to. We're gonna talk about those, 665 00:29:58,640 --> 00:30:00,960 Speaker 1: the truth that is in them, why they're not true, 666 00:30:01,400 --> 00:30:03,600 Speaker 1: as we're trying to help folks to determine whether or 667 00:30:03,640 --> 00:30:06,120 Speaker 1: not investing in real estate is for them, And we'll 668 00:30:06,160 --> 00:30:17,040 Speaker 1: get to all of that right after this break. All right, Matt, 669 00:30:17,120 --> 00:30:19,800 Speaker 1: let's keep going, let's talk about investing in real estates again. 670 00:30:19,920 --> 00:30:22,280 Speaker 1: There are a few excuses that we've gone over so far, 671 00:30:22,720 --> 00:30:25,320 Speaker 1: some of which hold some water, have some validity, but 672 00:30:25,440 --> 00:30:27,240 Speaker 1: some of which really don't hold up when you you 673 00:30:27,560 --> 00:30:29,800 Speaker 1: put them up against the light and you're like, actually, 674 00:30:29,880 --> 00:30:31,600 Speaker 1: maybe that's not a great excuse. I just need to 675 00:30:31,640 --> 00:30:33,240 Speaker 1: do a little more work or a little more research 676 00:30:33,440 --> 00:30:35,920 Speaker 1: in order to make sure that I'm buttoned up. But 677 00:30:36,080 --> 00:30:39,400 Speaker 1: really the excuse itself doesn't hold much water. But the 678 00:30:39,440 --> 00:30:42,120 Speaker 1: next one, Matt that we're gonna tackle. Something I've heard 679 00:30:42,120 --> 00:30:44,560 Speaker 1: people say too is I don't want to become a 680 00:30:44,560 --> 00:30:48,880 Speaker 1: slum lord. And that's like something people fear is owning 681 00:30:48,880 --> 00:30:51,800 Speaker 1: a property that's going to fall into disrepair and that 682 00:30:51,880 --> 00:30:54,840 Speaker 1: they're you know, renting renting out their property is something 683 00:30:54,880 --> 00:30:56,960 Speaker 1: that they've put a lot of money, they saved a 684 00:30:57,000 --> 00:30:58,920 Speaker 1: lot of money to buy renting it out the ne'er 685 00:30:58,960 --> 00:31:00,760 Speaker 1: do wells or something like that, or just the or 686 00:31:00,840 --> 00:31:03,480 Speaker 1: just the idea that maybe you're just taking advantage of people, 687 00:31:03,560 --> 00:31:05,160 Speaker 1: right Like of sometimes I think that that can kind 688 00:31:05,160 --> 00:31:07,960 Speaker 1: of be the mindset if you own a property that 689 00:31:08,040 --> 00:31:10,400 Speaker 1: maybe isn't as nice as the one that you happen 690 00:31:10,440 --> 00:31:12,280 Speaker 1: to live in. Yeah, that you're taking advantage of them, 691 00:31:12,280 --> 00:31:14,800 Speaker 1: exactly like you've said, And I would say this, what 692 00:31:15,000 --> 00:31:17,920 Speaker 1: you can still provide a great value for renters as 693 00:31:17,960 --> 00:31:20,840 Speaker 1: a landlord, just because a property you own wouldn't be 694 00:31:20,920 --> 00:31:23,080 Speaker 1: the first spot that you would want to rent. But 695 00:31:23,200 --> 00:31:25,560 Speaker 1: it doesn't mean that you're you aren't providing value to others. 696 00:31:25,880 --> 00:31:27,760 Speaker 1: I think about even Matt like the duplex that I 697 00:31:27,800 --> 00:31:30,200 Speaker 1: lived in for a while when I first moved into Atlanta, 698 00:31:30,240 --> 00:31:33,520 Speaker 1: when I first moved inside the perimeter, and it's probably 699 00:31:33,560 --> 00:31:35,800 Speaker 1: one that the landlord you know, wouldn't have lived in 700 00:31:35,840 --> 00:31:37,480 Speaker 1: at that point in his life, but when he was 701 00:31:37,520 --> 00:31:39,560 Speaker 1: in his twenties like me, he probably would have been 702 00:31:39,600 --> 00:31:42,960 Speaker 1: glad to live there. You know, different properties, different sizes, 703 00:31:43,160 --> 00:31:46,840 Speaker 1: you know, different levels of different amenities, they appeal to 704 00:31:46,920 --> 00:31:50,080 Speaker 1: different renters um and and different price points. Right. We 705 00:31:50,120 --> 00:31:52,840 Speaker 1: actually got an email recently from a listener who insisted 706 00:31:53,120 --> 00:31:56,840 Speaker 1: that owning rental properties is taking the advantage of renters. 707 00:31:56,880 --> 00:32:00,480 Speaker 1: But that's just a misconception. People need a place to live, 708 00:32:00,520 --> 00:32:03,320 Speaker 1: and there are plenty of reasons that many people would 709 00:32:03,360 --> 00:32:06,040 Speaker 1: prefer not to buy. Maybe there are only going to 710 00:32:06,120 --> 00:32:07,640 Speaker 1: live in that city for a short period of time. 711 00:32:07,720 --> 00:32:09,720 Speaker 1: They need a place for a year, and then they're 712 00:32:09,760 --> 00:32:12,920 Speaker 1: moving on. Uh. It's not that some landlords aren't jerks 713 00:32:12,920 --> 00:32:16,239 Speaker 1: and don't take advantage of people, because that does happen. Uh. 714 00:32:16,320 --> 00:32:17,800 Speaker 1: You know, some of the Wall Street firms that are 715 00:32:17,800 --> 00:32:20,640 Speaker 1: buying more and more single family homes across the country, 716 00:32:20,920 --> 00:32:24,000 Speaker 1: they're acting increasingly awful towards their tenants. There have been, 717 00:32:24,440 --> 00:32:27,640 Speaker 1: uh much, there's been much inks build about the way 718 00:32:27,680 --> 00:32:30,600 Speaker 1: some of these companies are not doing repairs and are 719 00:32:30,720 --> 00:32:33,560 Speaker 1: you know, pulling the wool over their tenants eyes. But yeah, 720 00:32:33,600 --> 00:32:36,800 Speaker 1: owning a rental property is not by nature taking advantage 721 00:32:36,800 --> 00:32:40,240 Speaker 1: of someone else. Landlording is a service oriented business, and 722 00:32:40,240 --> 00:32:43,520 Speaker 1: it's crucial for landlords to take care of their property 723 00:32:43,680 --> 00:32:46,280 Speaker 1: and their tenants if they want to have a successful 724 00:32:46,320 --> 00:32:48,640 Speaker 1: business over the long term. Like Matt, one of the 725 00:32:48,640 --> 00:32:52,160 Speaker 1: things you mentioned was hopefully keeping your tenants around for 726 00:32:52,200 --> 00:32:55,080 Speaker 1: a number of years, because yeah, vacancy is one of 727 00:32:55,080 --> 00:32:57,160 Speaker 1: those things that landlords have to deal with. And the 728 00:32:57,200 --> 00:32:59,840 Speaker 1: better you treat your home, the better you treat your tenants, 729 00:33:00,040 --> 00:33:03,000 Speaker 1: the longer they stay, the better you do as a landlord. 730 00:33:03,680 --> 00:33:06,520 Speaker 1: What other excuse that we often hear from folks is 731 00:33:06,560 --> 00:33:08,640 Speaker 1: that I'm not handy. I'm not like I don't I 732 00:33:08,640 --> 00:33:10,320 Speaker 1: don't know how to swing a hammer. I don't really 733 00:33:10,360 --> 00:33:12,440 Speaker 1: know what I'm doing when it comes to keeping up 734 00:33:12,440 --> 00:33:14,480 Speaker 1: a property. And here's the thing with this one, is 735 00:33:14,520 --> 00:33:16,680 Speaker 1: that we feel that you need to be ready and 736 00:33:16,920 --> 00:33:19,600 Speaker 1: at least willing to put in some elbow grease to 737 00:33:19,640 --> 00:33:21,760 Speaker 1: be a good landlord, because if you refuse to do 738 00:33:21,840 --> 00:33:24,440 Speaker 1: some of the most basic tasks, then the likelihood that 739 00:33:24,480 --> 00:33:26,760 Speaker 1: real estate investing is going to be right for you, 740 00:33:26,840 --> 00:33:29,280 Speaker 1: I think is actually kind of small. Like painting walls, 741 00:33:29,560 --> 00:33:32,000 Speaker 1: fixing toilets like these are some of the easier things 742 00:33:32,440 --> 00:33:34,480 Speaker 1: that we feel that you should be willing to try out. 743 00:33:34,880 --> 00:33:36,120 Speaker 1: We're not saying that you have to be able to 744 00:33:36,120 --> 00:33:38,560 Speaker 1: rewire an entire house right in order to be a 745 00:33:38,560 --> 00:33:41,240 Speaker 1: good investor. I'm fairly handy, uh, and I'm very willing 746 00:33:41,360 --> 00:33:43,640 Speaker 1: to fix the small stuff myself. And for the things 747 00:33:43,640 --> 00:33:45,720 Speaker 1: that are a little bit out of my reach. Uh, 748 00:33:45,880 --> 00:33:48,640 Speaker 1: Luckily there's YouTube for those fixes, the ones that I 749 00:33:48,680 --> 00:33:51,040 Speaker 1: don't understand. And one other thing I wanted to point 750 00:33:51,080 --> 00:33:53,960 Speaker 1: out too, is that just because you're willing to learn 751 00:33:53,960 --> 00:33:55,680 Speaker 1: how to do some of these things, doesn't necessarily mean 752 00:33:55,720 --> 00:33:58,360 Speaker 1: that it's super easy. I think a lot of times folks, 753 00:33:58,400 --> 00:34:01,560 Speaker 1: you know, with all the different up being home remodeling 754 00:34:01,600 --> 00:34:04,800 Speaker 1: shows on TV, they think, oh, it's super easy to 755 00:34:05,080 --> 00:34:07,480 Speaker 1: give this house a facelift, and that we're gonna be 756 00:34:07,560 --> 00:34:10,160 Speaker 1: raking in the cash. It's not as easy as the 757 00:34:10,200 --> 00:34:12,439 Speaker 1: shows make it look. Right. Yeah, and some of those shows, Matt, 758 00:34:12,480 --> 00:34:16,880 Speaker 1: their timelines are accelerated, oh my god, where like nobody 759 00:34:16,960 --> 00:34:19,239 Speaker 1: in real life gets to do what they do to 760 00:34:19,280 --> 00:34:21,359 Speaker 1: a home in that period of time. It usually takes 761 00:34:21,520 --> 00:34:24,040 Speaker 1: four or five times as long. So yeah, if you're 762 00:34:24,080 --> 00:34:27,399 Speaker 1: assuming though that you have to be ridiculously handy, that's 763 00:34:27,440 --> 00:34:29,440 Speaker 1: not true. And Matt, you are pretty handy. I am 764 00:34:29,520 --> 00:34:32,759 Speaker 1: less so, but I'm willing at least right to take 765 00:34:32,800 --> 00:34:34,640 Speaker 1: on some of those things and to figure it out. 766 00:34:34,880 --> 00:34:38,640 Speaker 1: So is real estate investing right for you? Well, it 767 00:34:38,680 --> 00:34:41,279 Speaker 1: definitely helps to have that willingness to learn. I think 768 00:34:41,280 --> 00:34:43,880 Speaker 1: that's one of those fundamental needs that are real estate 769 00:34:43,960 --> 00:34:46,680 Speaker 1: investor has to have. If that's not you, if you're 770 00:34:46,719 --> 00:34:50,239 Speaker 1: not interested in learning more about fixed the fixes that 771 00:34:50,280 --> 00:34:52,400 Speaker 1: you're gonna have to make, then I would say, you know, 772 00:34:52,640 --> 00:34:54,799 Speaker 1: think again. But you also definitely need to get good 773 00:34:54,840 --> 00:34:58,520 Speaker 1: at scheduling appointments for contractors and workers to make repairs 774 00:34:58,640 --> 00:35:01,280 Speaker 1: or to take on. Yeah. The other are bigger projects 775 00:35:01,280 --> 00:35:03,640 Speaker 1: that you might have to not be able to do yourself. Um, 776 00:35:03,680 --> 00:35:05,759 Speaker 1: and a lot of this comes down to determining what 777 00:35:05,840 --> 00:35:07,920 Speaker 1: you want your life to look like. Right early on, 778 00:35:08,120 --> 00:35:11,400 Speaker 1: before we had kids, like I feel like Matt, you 779 00:35:11,440 --> 00:35:13,160 Speaker 1: and I, we probably had more paint on our shirts. 780 00:35:13,560 --> 00:35:15,359 Speaker 1: You know, we were getting in there and getting stuff done. 781 00:35:15,680 --> 00:35:18,880 Speaker 1: We were a little more inclined to go the d 782 00:35:18,920 --> 00:35:21,919 Speaker 1: I Y route, little more hands on. Yeah, but yeah, 783 00:35:21,960 --> 00:35:24,319 Speaker 1: now it looks more like phone calls and text in 784 00:35:24,400 --> 00:35:26,400 Speaker 1: order to schedule to work and have someone else do it. 785 00:35:26,640 --> 00:35:28,840 Speaker 1: I'm more willing now than ever to hire the pros, 786 00:35:28,920 --> 00:35:31,919 Speaker 1: especially for some of those bigger projects. But I'm still willing. 787 00:35:31,960 --> 00:35:33,600 Speaker 1: I went over there and fixed a toilet handle the 788 00:35:33,640 --> 00:35:35,759 Speaker 1: other day, good for you. Yeah, it was one of 789 00:35:35,800 --> 00:35:38,320 Speaker 1: those things that was incredibly simple, and I just couldn't 790 00:35:38,360 --> 00:35:40,560 Speaker 1: stomach the idea it was a four dollar part of 791 00:35:40,560 --> 00:35:43,319 Speaker 1: a plumber charging or something like that. In order to 792 00:35:43,360 --> 00:35:45,560 Speaker 1: do it, and so on that stuff. I feel like 793 00:35:45,760 --> 00:35:48,360 Speaker 1: it still pays off for me to be involved, to 794 00:35:48,480 --> 00:35:50,719 Speaker 1: know kind of the problem that's going on and to 795 00:35:50,760 --> 00:35:54,040 Speaker 1: try to address it myself. If it's like minimally invasive, Yeah, 796 00:35:54,400 --> 00:35:57,800 Speaker 1: if you don't want to do the manual labor yourself networking, 797 00:35:57,800 --> 00:35:59,960 Speaker 1: that's actually gonna be a big part of finding those 798 00:36:00,080 --> 00:36:03,279 Speaker 1: dependable and affordable contractors. But here's the thing, even if 799 00:36:03,280 --> 00:36:05,759 Speaker 1: you're down with d I y ng it, or if 800 00:36:05,760 --> 00:36:08,319 Speaker 1: you're totally fine with hiring folks, it's important to ask 801 00:36:08,360 --> 00:36:11,120 Speaker 1: yourself whether you even have the time to do any 802 00:36:11,160 --> 00:36:13,279 Speaker 1: of that at all, because real estate investing it can 803 00:36:13,280 --> 00:36:15,279 Speaker 1: take up a lot of your time, or it can 804 00:36:15,320 --> 00:36:16,759 Speaker 1: be something that you're able to kind of keep going 805 00:36:16,800 --> 00:36:19,040 Speaker 1: on the side. But either way, it's gonna take time, 806 00:36:19,080 --> 00:36:21,400 Speaker 1: and you need to consider if the other obligations that 807 00:36:21,440 --> 00:36:23,520 Speaker 1: you have in your life, uh, if they're if they're 808 00:36:23,520 --> 00:36:26,200 Speaker 1: gonna allow for you to take on this additional project. 809 00:36:26,520 --> 00:36:28,720 Speaker 1: Think of it less like passive investing in the market 810 00:36:28,719 --> 00:36:31,239 Speaker 1: and honestly more like a side gig. It is going 811 00:36:31,320 --> 00:36:33,239 Speaker 1: to take some time. You know. We talked about that 812 00:36:33,280 --> 00:36:35,440 Speaker 1: a little bit in a previous episode, Matt, where we 813 00:36:35,520 --> 00:36:38,200 Speaker 1: kind of talked about is passive income a myth? And 814 00:36:38,239 --> 00:36:40,960 Speaker 1: when it comes to investing in real estate, there is 815 00:36:41,400 --> 00:36:44,320 Speaker 1: some truth to the fact that it is a passive 816 00:36:44,680 --> 00:36:47,479 Speaker 1: source of passive income, But at the same time, it's 817 00:36:47,560 --> 00:36:50,960 Speaker 1: not completely that, and it does require work. It requires 818 00:36:51,000 --> 00:36:54,080 Speaker 1: a whole lot more of your time and energy than 819 00:36:54,520 --> 00:36:57,080 Speaker 1: just sticking money into an index fund inside of your 820 00:36:57,120 --> 00:36:59,400 Speaker 1: form own cake. Uh And I think you know another 821 00:36:59,480 --> 00:37:01,680 Speaker 1: question you have to ask yourself if you're trying to 822 00:37:01,680 --> 00:37:04,120 Speaker 1: figure out whether real estate investing is right for you 823 00:37:04,239 --> 00:37:07,680 Speaker 1: or not, is what are my larger life goals? Is 824 00:37:07,680 --> 00:37:11,080 Speaker 1: starting with the end in mind is helpful in determining 825 00:37:11,160 --> 00:37:14,000 Speaker 1: if real estate investing is kind of the right next 826 00:37:14,000 --> 00:37:15,719 Speaker 1: step for you. So, yeah, do you want to be 827 00:37:15,760 --> 00:37:18,080 Speaker 1: able to quit your corporate gig and have a more 828 00:37:18,080 --> 00:37:21,920 Speaker 1: flexible schedule managing and working on properties, Well, then maybe 829 00:37:22,000 --> 00:37:26,040 Speaker 1: real estate investing is particularly appealing to you. Are you 830 00:37:26,320 --> 00:37:28,920 Speaker 1: looking for a way too quickly and easily get filthy 831 00:37:29,000 --> 00:37:32,000 Speaker 1: rich without having to spend any time on it at all. Well, yeah, 832 00:37:32,360 --> 00:37:34,359 Speaker 1: that's not gonna work out. That's not what real estate 833 00:37:34,400 --> 00:37:38,200 Speaker 1: investing is for. So um, it's okay to refine your 834 00:37:38,200 --> 00:37:41,240 Speaker 1: goals over the years, but having that goal in mind 835 00:37:41,400 --> 00:37:44,040 Speaker 1: is really important before you start purchasing properties. Right before 836 00:37:44,040 --> 00:37:47,160 Speaker 1: you just kind of dive headlong into real estate investing, 837 00:37:47,520 --> 00:37:50,040 Speaker 1: You're you're investing time horizon is a big part of 838 00:37:50,080 --> 00:37:53,279 Speaker 1: this as whether it makes sense or not. Being a 839 00:37:53,280 --> 00:37:55,680 Speaker 1: buy and hold investor, it's even more important in real 840 00:37:55,760 --> 00:37:59,839 Speaker 1: estate because of the transaction costs involved in buying and selling. So, yeah, 841 00:38:00,080 --> 00:38:01,880 Speaker 1: just make sure you've taken the time to think deeply 842 00:38:01,920 --> 00:38:05,879 Speaker 1: about your goals before you just start to pounce, because yeah, 843 00:38:06,000 --> 00:38:08,480 Speaker 1: it might not even align with what you want for 844 00:38:08,480 --> 00:38:10,040 Speaker 1: your life. Yeah, the way I see real estate, there 845 00:38:10,080 --> 00:38:11,560 Speaker 1: are sort of three different things that you can get 846 00:38:11,560 --> 00:38:14,560 Speaker 1: out of real estate investing. You either find the work 847 00:38:15,320 --> 00:38:17,640 Speaker 1: or the like the challenge enjoyable, like you actually enjoy 848 00:38:17,680 --> 00:38:21,360 Speaker 1: the work itself. The money, that's definitely a great aspect 849 00:38:21,719 --> 00:38:24,520 Speaker 1: of investing in real estate. But there's also the time flexibility, 850 00:38:24,600 --> 00:38:26,399 Speaker 1: right like like you like you mentioned if you're looking 851 00:38:26,400 --> 00:38:28,799 Speaker 1: to get away from a nine to five corporate gig man, 852 00:38:28,840 --> 00:38:31,040 Speaker 1: if you were a full time manager of properties, that 853 00:38:31,080 --> 00:38:33,239 Speaker 1: gives you a lot more flexibility on what your days 854 00:38:33,280 --> 00:38:35,160 Speaker 1: look like. And so if you can identify which one 855 00:38:35,160 --> 00:38:37,200 Speaker 1: of those three things that you're trying to achieve, you 856 00:38:37,239 --> 00:38:39,360 Speaker 1: can figure out how it is that real estate is 857 00:38:39,400 --> 00:38:43,120 Speaker 1: going to fulfill that need um and if you're lucky 858 00:38:43,400 --> 00:38:45,759 Speaker 1: or super lucky, you can find a way to incorporate 859 00:38:46,120 --> 00:38:48,560 Speaker 1: two or even all three of those things into your 860 00:38:48,560 --> 00:38:50,839 Speaker 1: search for real estate, because yeah, if you have all 861 00:38:50,880 --> 00:38:53,120 Speaker 1: three of those in that ven diagram is like just 862 00:38:53,160 --> 00:38:56,760 Speaker 1: a circle, then you're perfectly overlapped. Yes, then you're golden. 863 00:38:56,960 --> 00:39:00,480 Speaker 1: And real estate investing should one be something that you 864 00:39:00,520 --> 00:39:02,959 Speaker 1: are striving after. But if it's just one of those things, 865 00:39:02,960 --> 00:39:04,960 Speaker 1: you kind of have to weigh the pros and cons 866 00:39:04,960 --> 00:39:07,520 Speaker 1: and figure out, Okay, this is going to fulfill one 867 00:39:07,520 --> 00:39:09,160 Speaker 1: of those things or two of those things. Is it 868 00:39:09,160 --> 00:39:11,560 Speaker 1: worth the time, the money, the energy that's going to 869 00:39:11,640 --> 00:39:13,879 Speaker 1: take to pursue that in a way that makes sense. Yeah, 870 00:39:13,880 --> 00:39:16,680 Speaker 1: I was just recently talking to a neighbor and he 871 00:39:16,840 --> 00:39:19,680 Speaker 1: I just realized that he also invests in real estate. 872 00:39:19,760 --> 00:39:22,640 Speaker 1: He's got a few properties, and yeah, one of the 873 00:39:22,640 --> 00:39:25,319 Speaker 1: things he mentioned was he's a lawyer, and he was like, 874 00:39:25,360 --> 00:39:28,160 Speaker 1: if I worked for a traditional like firm, there's no 875 00:39:28,239 --> 00:39:30,799 Speaker 1: way I could do both these things. But I just 876 00:39:31,000 --> 00:39:34,239 Speaker 1: love real estate. It's just excites me. I love like 877 00:39:34,400 --> 00:39:36,279 Speaker 1: I can spend an hour or two on Zillo on 878 00:39:36,320 --> 00:39:37,960 Speaker 1: a day, is what he told me. If he wants 879 00:39:38,360 --> 00:39:40,719 Speaker 1: because he works for himself. He decided not to go 880 00:39:40,800 --> 00:39:43,480 Speaker 1: work for another firm. He controls his schedule a whole 881 00:39:43,480 --> 00:39:46,000 Speaker 1: lot more. And there are things he gave up by 882 00:39:46,040 --> 00:39:48,840 Speaker 1: taking that route, but then there are others, likely more money, 883 00:39:49,200 --> 00:39:52,640 Speaker 1: right exactly as an attorney exactly. And so yeah, you 884 00:39:52,880 --> 00:39:55,879 Speaker 1: kind of have to make those decisions on a personal level. Um. 885 00:39:56,040 --> 00:39:58,640 Speaker 1: And if yeah, moving up the firm, becoming a partner 886 00:39:59,200 --> 00:40:01,319 Speaker 1: is the most important thing to you, then real estate 887 00:40:01,320 --> 00:40:04,200 Speaker 1: investing is probably something that is going to be harder 888 00:40:04,239 --> 00:40:06,600 Speaker 1: to come by or maybe impossible. Um. But if you're 889 00:40:06,640 --> 00:40:09,640 Speaker 1: like no, I prefer that flexibility, and you're willing to 890 00:40:09,680 --> 00:40:12,279 Speaker 1: like work for yourself in order to have the flexibility, 891 00:40:12,360 --> 00:40:14,560 Speaker 1: or you just have a more flexible job in general 892 00:40:14,960 --> 00:40:17,239 Speaker 1: than I would say, Yeah, real estate investing can make 893 00:40:17,280 --> 00:40:20,160 Speaker 1: sense exactly. All right, let's real quickly discuss how it 894 00:40:20,239 --> 00:40:22,440 Speaker 1: is that you can get started in real estate. Uh. 895 00:40:22,480 --> 00:40:24,080 Speaker 1: And first of all, we would encourage you to find 896 00:40:24,440 --> 00:40:27,719 Speaker 1: a local real estate investors club to be a part of. 897 00:40:28,080 --> 00:40:30,360 Speaker 1: And you know this isn't because we want you to 898 00:40:30,440 --> 00:40:32,359 Speaker 1: join a club and to you know, be like the 899 00:40:32,360 --> 00:40:34,520 Speaker 1: social chair and for it to step you know, a 900 00:40:34,520 --> 00:40:37,080 Speaker 1: bunch of time from your life. But the idea is 901 00:40:37,120 --> 00:40:39,440 Speaker 1: that you can find somebody who you can partner with 902 00:40:39,520 --> 00:40:40,960 Speaker 1: or that you can learn from. Maybe you can find 903 00:40:41,000 --> 00:40:43,759 Speaker 1: somebody who has identified one of those three things that 904 00:40:43,840 --> 00:40:46,440 Speaker 1: you're looking for. And Okay, how is it that you're 905 00:40:46,440 --> 00:40:48,480 Speaker 1: able to do this to achieve the same goals that 906 00:40:48,600 --> 00:40:51,040 Speaker 1: I also want to achieve in my life. That's why 907 00:40:51,080 --> 00:40:52,719 Speaker 1: we would want you to kind of hook up with 908 00:40:52,719 --> 00:40:55,720 Speaker 1: some other investors. Yeah, just surrounding yourself with other people 909 00:40:55,800 --> 00:40:57,640 Speaker 1: that have kind of been there, done that is going 910 00:40:57,680 --> 00:41:00,160 Speaker 1: to be motivational right now. Um, and it's going to 911 00:41:00,239 --> 00:41:02,399 Speaker 1: be some of those connections gonna provide some of those 912 00:41:02,400 --> 00:41:05,880 Speaker 1: connections that are going to be helpful when it comes 913 00:41:05,920 --> 00:41:09,000 Speaker 1: to finding properties, when it comes to financing properties. Um, 914 00:41:09,239 --> 00:41:11,960 Speaker 1: just joining one of those groups is going to provide 915 00:41:11,960 --> 00:41:14,040 Speaker 1: a whole lot of insights that even reading a couple 916 00:41:14,000 --> 00:41:16,719 Speaker 1: of those great books won't be able to provide you totally. Yeah, 917 00:41:16,760 --> 00:41:18,840 Speaker 1: we would encourage folks to check out the Bigger Pockets 918 00:41:18,880 --> 00:41:21,439 Speaker 1: site and forms as well. Uh, they've got a bunch 919 00:41:21,440 --> 00:41:23,880 Speaker 1: of great books out Uh. And there are even some 920 00:41:23,960 --> 00:41:28,760 Speaker 1: great Facebook groups for would be real estate investors as well. Again, Uh, 921 00:41:29,120 --> 00:41:32,400 Speaker 1: you're acquiring knowledge, but is so helpful to make some 922 00:41:32,480 --> 00:41:35,919 Speaker 1: personal connections, especially in the local markets where you're looking 923 00:41:35,960 --> 00:41:38,440 Speaker 1: to purchase. It can be immensely helpful to have somebody 924 00:41:38,440 --> 00:41:40,640 Speaker 1: there to show you the ropes. Yeah, Matt, for a while, 925 00:41:40,680 --> 00:41:44,040 Speaker 1: I was like having regular beer hangs with a local 926 00:41:44,080 --> 00:41:46,919 Speaker 1: beer investor and his wife. They were about thirty thirty 927 00:41:46,960 --> 00:41:49,040 Speaker 1: five years older than me, and they had so much experience, 928 00:41:49,120 --> 00:41:51,840 Speaker 1: and so just buying them beers. He liked PBR and 929 00:41:51,840 --> 00:41:53,799 Speaker 1: I was cool to drink pr with them, um and 930 00:41:53,840 --> 00:41:58,000 Speaker 1: so yeah, just that very act of getting together and 931 00:41:58,080 --> 00:42:00,520 Speaker 1: just hanging out one I just enjoyed them as people. 932 00:42:00,600 --> 00:42:02,840 Speaker 1: And then I also learned a lot about investing in 933 00:42:02,880 --> 00:42:05,000 Speaker 1: real estate because they have been doing it a whole 934 00:42:05,040 --> 00:42:07,160 Speaker 1: lot longer than me, and I love being able to 935 00:42:07,200 --> 00:42:10,480 Speaker 1: pick their brains. Nice. I thought you said local beer investors, 936 00:42:10,520 --> 00:42:12,560 Speaker 1: which maybe you said, but I realized that you're talking 937 00:42:12,600 --> 00:42:14,560 Speaker 1: about real estate real estate. You're gonna talking about like 938 00:42:14,600 --> 00:42:17,680 Speaker 1: investing in a brewery. No, So he's a real estate 939 00:42:17,719 --> 00:42:19,720 Speaker 1: Investor's a different story, and they've been doing it for 940 00:42:19,719 --> 00:42:21,920 Speaker 1: for such a long period of time. And learn a 941 00:42:21,960 --> 00:42:24,120 Speaker 1: lot of cool stuff from them. But I think one 942 00:42:24,160 --> 00:42:25,880 Speaker 1: of the other things. Ye know that we have to 943 00:42:25,880 --> 00:42:28,040 Speaker 1: mention when we're talking about how to get started is 944 00:42:28,280 --> 00:42:31,360 Speaker 1: don't be afraid to start small. You can go the 945 00:42:31,400 --> 00:42:33,960 Speaker 1: house hacking route or just rent out a room in 946 00:42:34,000 --> 00:42:36,160 Speaker 1: the house that you currently live in, you know, your 947 00:42:36,200 --> 00:42:38,880 Speaker 1: first full ray into real estate investing. It doesn't have 948 00:42:38,960 --> 00:42:42,640 Speaker 1: to be something gargantuan like the purchase of a quadplex, right. 949 00:42:42,680 --> 00:42:44,680 Speaker 1: You can dip your toes into the water before you 950 00:42:44,680 --> 00:42:47,440 Speaker 1: start making big moves. And I think sometimes people get 951 00:42:47,520 --> 00:42:49,759 Speaker 1: hung up because they feel like they need to make 952 00:42:50,040 --> 00:42:52,399 Speaker 1: just a gargantuan splash if they're going to get into 953 00:42:52,440 --> 00:42:55,120 Speaker 1: real estate investing. But starting small is actually the best 954 00:42:55,160 --> 00:42:57,400 Speaker 1: way to go about it. It requires the least amount 955 00:42:57,400 --> 00:42:59,399 Speaker 1: of money and also kind of makes the learning curve 956 00:42:59,400 --> 00:43:01,920 Speaker 1: a little bit easy. Yeah, and along the lines of 957 00:43:01,960 --> 00:43:04,120 Speaker 1: starting out small, we would encourage folks to live in 958 00:43:04,200 --> 00:43:08,520 Speaker 1: the home first, especially if you are younger. Buying a 959 00:43:08,520 --> 00:43:10,319 Speaker 1: smaller home and living in it for a year or 960 00:43:10,320 --> 00:43:13,279 Speaker 1: two before moving out and turning that house into a 961 00:43:13,360 --> 00:43:17,359 Speaker 1: rental is a great recipe for beginner investors. You're you're 962 00:43:17,360 --> 00:43:19,359 Speaker 1: gonna be able to put less money down and you're 963 00:43:19,360 --> 00:43:21,120 Speaker 1: gonna be able to get a more favorable interest rate 964 00:43:21,160 --> 00:43:23,480 Speaker 1: by living in the home that you're buying uh to 965 00:43:23,560 --> 00:43:25,719 Speaker 1: eventually be an investment. And when you live in the 966 00:43:25,760 --> 00:43:28,239 Speaker 1: home too, you'll be able to become familiar with all 967 00:43:28,280 --> 00:43:30,600 Speaker 1: the different little quirks that it has. You can even 968 00:43:30,600 --> 00:43:34,000 Speaker 1: start fixing some of those courts while you live in yes, yeah, uh, 969 00:43:34,040 --> 00:43:35,520 Speaker 1: and you'll know it well and you'll be able to 970 00:43:35,600 --> 00:43:38,080 Speaker 1: make some of those updates before you listed on zillo. 971 00:43:38,160 --> 00:43:40,160 Speaker 1: But again, it is important to keep this in mind 972 00:43:40,160 --> 00:43:43,479 Speaker 1: when you're looking to purchase that home, because a home 973 00:43:43,800 --> 00:43:46,640 Speaker 1: that's uh, you might want to live in for maybe 974 00:43:46,640 --> 00:43:48,600 Speaker 1: the rest of your life, that's probably not going to 975 00:43:48,680 --> 00:43:50,959 Speaker 1: make a great rental. And so if you know, hey, 976 00:43:51,360 --> 00:43:53,640 Speaker 1: my goal is to turn this into a rental, you 977 00:43:53,640 --> 00:43:55,640 Speaker 1: can keep that in mind and some little quirks that 978 00:43:55,680 --> 00:43:58,120 Speaker 1: it has where it might be a deal breaker for 979 00:43:58,239 --> 00:44:00,359 Speaker 1: you know, you and your partner where you to want 980 00:44:00,360 --> 00:44:03,280 Speaker 1: to live in that house for ten fifteen years instead, 981 00:44:03,320 --> 00:44:05,000 Speaker 1: that just becomes a small quirk of the house and 982 00:44:05,040 --> 00:44:07,479 Speaker 1: something that's uh, you don't have to deal with because 983 00:44:07,520 --> 00:44:09,839 Speaker 1: pretty soon you're gonna have a renter in there instead. Yeah, 984 00:44:09,840 --> 00:44:11,680 Speaker 1: knowing that you're committing to living in that home only 985 00:44:11,719 --> 00:44:13,720 Speaker 1: for a short period of time for a specific reason 986 00:44:14,040 --> 00:44:16,120 Speaker 1: actually helps. I think with that, Like our first home, 987 00:44:16,160 --> 00:44:18,399 Speaker 1: Matt didn't have a dishwasher, and we were like, that's cool, 988 00:44:18,440 --> 00:44:20,800 Speaker 1: we can hand wash dishes together, handwash it old school. 989 00:44:20,880 --> 00:44:22,880 Speaker 1: And then you know, it's kind of funny. Every time 990 00:44:22,920 --> 00:44:24,480 Speaker 1: I go back in that house, because we still have 991 00:44:24,520 --> 00:44:26,600 Speaker 1: it as a rental, I see that and I'm like, 992 00:44:26,640 --> 00:44:29,000 Speaker 1: I guess people still are okay. Some people are okay 993 00:44:29,040 --> 00:44:30,799 Speaker 1: with living without a dishwasher. They have a little rack 994 00:44:30,880 --> 00:44:34,719 Speaker 1: over always you gotta have a drying rack, right, But 995 00:44:34,800 --> 00:44:36,480 Speaker 1: it's one of those things where it's like, now we 996 00:44:36,600 --> 00:44:39,080 Speaker 1: probably we really want a dishwasher because we have three kids, 997 00:44:39,440 --> 00:44:41,080 Speaker 1: but back then it wasn't as big of a deal 998 00:44:41,080 --> 00:44:43,240 Speaker 1: to us. Um, but yeah, two plates in a bowl, 999 00:44:43,480 --> 00:44:45,319 Speaker 1: serving bowl, right, Yeah, when when it's just the two 1000 00:44:45,360 --> 00:44:47,279 Speaker 1: of you, like, how much are you actually using when 1001 00:44:47,280 --> 00:44:49,920 Speaker 1: it comes to silverware and glass wear and all that stuff. 1002 00:44:50,360 --> 00:44:52,200 Speaker 1: But I think when you boil it down mat the 1003 00:44:52,280 --> 00:44:55,520 Speaker 1: question of whether real estate investing is right for a 1004 00:44:55,520 --> 00:44:58,520 Speaker 1: particular person or not comes down to a whole lot 1005 00:44:58,600 --> 00:45:01,480 Speaker 1: of personal specifics, like do you have the desire and 1006 00:45:01,480 --> 00:45:04,359 Speaker 1: the temperament to invest in real estate? If so well, 1007 00:45:04,400 --> 00:45:06,560 Speaker 1: we would encourage you to start making that journey. And 1008 00:45:06,560 --> 00:45:08,920 Speaker 1: that doesn't mean, you know, putting an offer on the 1009 00:45:08,920 --> 00:45:11,480 Speaker 1: house tomorrow, but it at least means kind of starting 1010 00:45:11,480 --> 00:45:14,160 Speaker 1: to get knowledgeable about the subject. And if you've listened 1011 00:45:14,200 --> 00:45:16,399 Speaker 1: to this episode and you're a little overwhelmed right now, 1012 00:45:16,680 --> 00:45:19,000 Speaker 1: that's okay, Like we're not trying to push you into 1013 00:45:19,000 --> 00:45:22,120 Speaker 1: anything that you aren't excited about or interested in. Um, 1014 00:45:22,320 --> 00:45:23,879 Speaker 1: we just want to make sure that you're not letting 1015 00:45:23,880 --> 00:45:27,480 Speaker 1: those common excuses that we mentioned and uh, that that 1016 00:45:27,520 --> 00:45:29,359 Speaker 1: you're not letting those the ones that you've heard over 1017 00:45:29,360 --> 00:45:32,160 Speaker 1: the years win out and making that decision for you, 1018 00:45:32,239 --> 00:45:35,000 Speaker 1: because there are a lot of good reasons to get 1019 00:45:35,040 --> 00:45:38,560 Speaker 1: started investing in rental real estate. You just want to 1020 00:45:38,560 --> 00:45:41,120 Speaker 1: make sure that is the right fit for your lifestyle 1021 00:45:41,400 --> 00:45:44,360 Speaker 1: and how you want to live. That is right, buddy, 1022 00:45:44,440 --> 00:45:46,120 Speaker 1: Let's go ahead and shift gears. Let's get back to 1023 00:45:46,160 --> 00:45:48,240 Speaker 1: the beer that you and I drank on this episode. 1024 00:45:48,520 --> 00:45:53,359 Speaker 1: This is called a corn grisette by Cruis Blanca out 1025 00:45:53,360 --> 00:45:55,760 Speaker 1: of Chicago. What were your thoughts on this beer? Okay, 1026 00:45:55,760 --> 00:45:59,120 Speaker 1: so I think the grisette is a vastly underutilized style 1027 00:45:59,120 --> 00:46:01,400 Speaker 1: of beer. To totally, and so I was really glad 1028 00:46:01,440 --> 00:46:03,359 Speaker 1: to get to try one because I feel like I've 1029 00:46:03,360 --> 00:46:05,359 Speaker 1: only had maybe two or three in my life. Really, 1030 00:46:05,360 --> 00:46:07,600 Speaker 1: they're kind of rare. Not many breweries make them. I 1031 00:46:07,600 --> 00:46:09,920 Speaker 1: don't honestly, I don't technically know what it makes a 1032 00:46:10,000 --> 00:46:12,680 Speaker 1: grizette versus just kind of a sour ale, except for 1033 00:46:12,719 --> 00:46:14,360 Speaker 1: the fact that I'm pretty sure grisettes are all a 1034 00:46:14,360 --> 00:46:17,200 Speaker 1: little bit lighter, right, Yeah. I think they're like basically 1035 00:46:17,200 --> 00:46:21,200 Speaker 1: wheat based farmhouse beer. And so this one was interesting 1036 00:46:21,239 --> 00:46:22,960 Speaker 1: because it had corn in it, which made it a 1037 00:46:23,040 --> 00:46:25,680 Speaker 1: little bit sweeter, but it still had like a solid 1038 00:46:26,320 --> 00:46:29,120 Speaker 1: funkiness to it, like you know, which I enjoyed. So 1039 00:46:29,680 --> 00:46:32,640 Speaker 1: I really like this beer because partly because I love 1040 00:46:32,719 --> 00:46:35,279 Speaker 1: the style, but this was a good representation of it, 1041 00:46:35,320 --> 00:46:37,279 Speaker 1: and it was just kind of a unique representation of 1042 00:46:37,320 --> 00:46:41,040 Speaker 1: it too. Um yeah, big two thumbs up on this one. Yeah. So, yeah, 1043 00:46:41,080 --> 00:46:43,560 Speaker 1: it's caught a corn garzette because it's made with corn 1044 00:46:44,160 --> 00:46:47,040 Speaker 1: grown in Illinois, which is super cool. So this brewery 1045 00:46:47,080 --> 00:46:50,000 Speaker 1: is out of Chicago and they just source corn that's 1046 00:46:50,040 --> 00:46:52,480 Speaker 1: grown there in their state, which really resonates with me 1047 00:46:52,560 --> 00:46:54,880 Speaker 1: because a lot of my family, uh, they live in Illinois, 1048 00:46:55,160 --> 00:46:57,560 Speaker 1: and I remember, just as a kid, even as an adult, 1049 00:46:57,880 --> 00:47:00,719 Speaker 1: driving through the you know, the countryside out of Illinois, 1050 00:47:00,800 --> 00:47:02,719 Speaker 1: and just I mean, I've never seen so much corn 1051 00:47:02,760 --> 00:47:06,479 Speaker 1: in my life. Just I mean, fields and fields, miles 1052 00:47:06,520 --> 00:47:10,080 Speaker 1: upon miles of nothing but corn along the interstate. But 1053 00:47:10,320 --> 00:47:13,200 Speaker 1: along with that funk, like like there's a nice amount 1054 00:47:13,200 --> 00:47:16,239 Speaker 1: of acidity as well going on. Just overall, just a 1055 00:47:16,239 --> 00:47:18,800 Speaker 1: really nice balanced beer. And I feel like it almost 1056 00:47:18,840 --> 00:47:23,040 Speaker 1: had this touch of clove spice kind of flavor going on. 1057 00:47:23,400 --> 00:47:24,800 Speaker 1: It wasn't over the top like you'd get out of 1058 00:47:24,800 --> 00:47:27,200 Speaker 1: a Belgian, but just a nice amount of something. It 1059 00:47:27,280 --> 00:47:29,279 Speaker 1: was almost like this kind of warming action going on. 1060 00:47:30,120 --> 00:47:32,120 Speaker 1: But yeah, I'm totay with you, man. It's almost like 1061 00:47:32,160 --> 00:47:35,880 Speaker 1: a table wild sort of sour ale. It's kind of 1062 00:47:35,960 --> 00:47:37,360 Speaker 1: nice and chill, so it's kind of like a what 1063 00:47:37,400 --> 00:47:39,680 Speaker 1: I would call a mild wild. I don't know if 1064 00:47:39,719 --> 00:47:43,480 Speaker 1: that's kind of like a oxymoronic way to describe a beer, 1065 00:47:43,960 --> 00:47:46,799 Speaker 1: but it's slightly tart, a little more funky than tart, 1066 00:47:46,840 --> 00:47:49,120 Speaker 1: I would say, But that combo of a little bit 1067 00:47:49,120 --> 00:47:51,120 Speaker 1: of both is just really nice. Yeah, exactly makes it 1068 00:47:51,160 --> 00:47:54,280 Speaker 1: really drinkable. Really enjoyed this one and thanks to Dennis 1069 00:47:54,680 --> 00:47:57,040 Speaker 1: and his girlfriend there at the brewery for sending this 1070 00:47:57,080 --> 00:47:58,759 Speaker 1: one our away, no doubt. All right, Well that's gonna 1071 00:47:58,800 --> 00:48:00,759 Speaker 1: do it for this episode. For folks who want the 1072 00:48:00,760 --> 00:48:03,120 Speaker 1: show notes for this episode with links to anything's that 1073 00:48:03,200 --> 00:48:05,080 Speaker 1: we mentioned, any sites that we mentioned, just go to 1074 00:48:05,080 --> 00:48:07,520 Speaker 1: our website at how to Money dot com. That's right. 1075 00:48:07,880 --> 00:48:09,680 Speaker 1: In a special call out to anyone out there who's 1076 00:48:09,680 --> 00:48:11,520 Speaker 1: been listening to How the Money for a while and 1077 00:48:11,560 --> 00:48:13,279 Speaker 1: it has caused you to go down the path of 1078 00:48:13,320 --> 00:48:16,359 Speaker 1: real estate investing specifically, we would love it if you 1079 00:48:16,440 --> 00:48:18,200 Speaker 1: kind of left a note in your review, if you 1080 00:48:18,200 --> 00:48:20,400 Speaker 1: haven't left us a review yet, talking about how this 1081 00:48:20,440 --> 00:48:23,239 Speaker 1: show has encouraged you to be smarter with your money, 1082 00:48:23,239 --> 00:48:26,080 Speaker 1: specifically in the way of investing in real estate. We 1083 00:48:26,120 --> 00:48:27,759 Speaker 1: know there's a lot of you out there. We've heard 1084 00:48:27,800 --> 00:48:29,520 Speaker 1: for some of y'all, we would just love for you 1085 00:48:29,600 --> 00:48:31,480 Speaker 1: to get that message out there to other folks who 1086 00:48:31,480 --> 00:48:33,719 Speaker 1: haven't listened to the show yet, no doubt. All right, 1087 00:48:33,719 --> 00:48:35,680 Speaker 1: Well that's gonna do it for this episode, Matt. Until 1088 00:48:35,680 --> 00:48:38,560 Speaker 1: next time, Best Friends Out, Best Friends Out.